An Intruder Just Got Into Your Home Office: The Irs

Bill Clinton may not have decided whether to raise taxes. But in an 8-1 decision limiting home office deductions, the Supreme Court on Jan. 12 in effect did part of the job for him. Hundreds of thousands of people will be affected by the ruling, which allows deductions only if a home office is the principal place of business. Some 1.6 million taxpayers claimed home office deductions last year, saving an estimated $8 billion. No one knows precisely how many taxpayers will be affected, but one New York accountant says it could be upward of 50% of those who claimed the deduction.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.