Home Based Business Tax Avoidance 

Facts About Home Based Businesses

In order to deduct expenses related to the business use of your home, you must carry-on a "bona fide" business, as well as meet other specific requirements. Even then, your business tax deduction may be limited.

To qualify to claim expenses for the business use of your home, you must meet both of the following tests:

Your use of the business part of your home must be:

• Exclusive, Regular, and
• For your trade or business,

AND

The business part of your home must be one of the following:

• Your principal place of business,
• A place where you meet and deal with customers in the normal course of your trade or business, or
• A separate structure you use in connection with your trade or business

Home Based Business Tax Avoidance Schemes

Scam home based businesses and tax avoidance promotions have gained popularity over the last few years for a variety of reasons, including:

• The desire of individuals to reduce the amount of taxes they pay.
• Unscrupulous promoters selling tax aVOidance and audit assistance packages.
• Taxpayers being advised they can deduct all or most of their home and other personal assets as business expenses.

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