Deducting the Home Office - What should a...
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What should a person do if they have deducted home business
expenses on a return that are actually non-deductible personal expenses?
File an amended return. If the amended return results in additional tax owed, the
taxpayer may also be subject to interest and penalties. However, amending a
return may reduce the amount of penalties and interest eventually owed. For
additional guidance on amending returns, seek the advice of a trusted tax
What if the home business owner does not amend their return?
If the return is audited, the possible penalties, interest, and legal costs associated with an abusive tax promotion can be significant. Criminal sanctions may also apply including: criminal penalties, imprisonment, and fines. This is in addition to the tax due and fees paid for the promotion. Contact a competent professional for help.
Since this article is designed for people with a home based business, and not
employees who work from their homes for the convenience of their employers
(telecommuters), we will cover only a few important areas and not devote too
much time to deductions for persons considered “employees”, based on the
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