Telecommuting adds a new dimension to office in the home: steps to qualify for a business deduction

Article Abstract:

Telecommuters (those working at home via personal computers or word processors) must meet certain requirements prior to deducting expenses for their "home offices" on their individual tax returns. The software program used by the employer can affect the employee's ability to claim telecommuting as a tax deduction. The 1976 Congress also ruled that the deducted portion of the home must be used exclusively and regularly for business purposes, although the home office need not be a separate room. The home office must also be the principal place of business, a place used to meet clients, or a structure separate from the home. It is easier to identify the home as the principal place of business if the telecommuter is considered an independent contractor, rather than an employee. It is also helpful if the telecommuter can demonstrate that he has met with clients throughout the year in his home office.

Analysis, Telecommuting

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The auto expense deduction of employees: under the Deficit Reduction Act of 1984

Article Abstract:

The Tax Reform Act of 1984 has significantly changed the requirements and procedures for calculating the employee auto expense deduction. The annual depreciation charge has been significantly reduced during the first three years of the accelerated cost recovery system (ACRS); employees must substantiate the business use of more than 50 percent in order to take an investment tax credit; and employees must meet stricter recordkeeping requirements. In addition, there are several new alternatives for calculating auto expenses, making it difficult for employees to determine which alternative is the most economically beneficial.

Economic aspects, Laws, regulations and rules, Tax reform, United States. Congress

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Home office deduction allowed for university professor

Article Abstract:

A college professor, in some situations, can take a deduction for home labor that involves university-related activities, according to the U.S. Court of Appeals, Second Circuit. The ruling overturns previous rulings made by the Tax Court that the main place of business is always the college campus. Though the Weissman case is limited in scope, additional professors may be helped in future tax cases.

Cases, Tax accounting, College teachers, College faculty

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