How did the new tax laws change the deductibility of home offices?
A. Before the tax law changes, the deductibility of home offices was limited based on the Supreme Court’s Soliman decision. That ruling limited home office deductions from business that performed services or delivered goods outside of the home even though significant amounts of work were performed in the home. The new rules allow the deduction to anyone who conducts administrative or management activities at home that does not have another fixed location where substantial amounts of administrative or management activities are performed. Back to top Independent Contractors Q. Can I have an employee that I also pay as an independent contractor? A. The short answer is absolutely not. The IRS would consider this an attempt to avoid payroll taxes and fine you double what it would have cost you to pay the taxes originally. Having said that, there are two ways around the IRS’s restrictions. The first and riskier way is to make sure that the tasks assigned to the individual as an employee and
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