Deducting the Home Office - The law does...
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The law does not require you to keep your records in any particular way. Keep
them in a manner that allows you and the IRS to determine your correct tax.
You can use your checkbook to keep a record of your income and expenses. In
your checkbook you should record amounts, sources of deposits, and types of
expenses. You also need to keep documents, such as receipts and sales slips,
that can help prove a deduction.
Keep your records in an orderly fashion and in a safe place. You will need to
keep them by year and type of income or expense. One method is to keep all
records related to a particular item in a designated envelope for easy access and filing.
You have many record maintenance options available to you, from expensive,
pre-bundled software to a simple spreadsheet or even a handwritten, spiral
notebook. If you use a computerized system, you must be able to produce legible
records of the information needed to determine your correct tax liability.
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