H&R Block for 1099. Lease operator.

You'd know better than any of us, so I'll take your word for it. Congrats on the good news.

 

Everyone is just saying,,, some of the things he wrote off would have a hard time flying with the IRS... You might want them to relook at it again with a different person doing the looking.

My CPA tried to get lawn care put down, but a simple call to the IRS resolved that fast. The lawn has nothing to do with the office space and this is not a business park.

The fact you are OTR and not day to day in an "Office" in your house, but a place where you do "some" business work every x weeks might be hard to get to fly as an Office space.

The IRS states that a home office is a room, or portion of a room in your home that is used to exclusively and regularly conduct business.

For example, if you are using a spare bedroom as a home office where you keep files, a desk, and computer, yet when guests stay over they use it as a bedroom, this won’t qualify as an exclusive business use and therefore ineligible for the deduction.

To qualify, you need to not only meet the requirement of regular and exclusive use, but you must meet the place of business requirement. This defines the place of business as the principal location of conducting business, or a place where you regularly meet with clients or customers.

The home office deduction isn’t just a flat calculation. It actually is a combination of many individual deductions which can be either direct or indirect expenses. Direct expenses are those used exclusively for your business such as a dedicated fax line, office equipment, or dedicated utilities.

Indirect expenses are those that may be shared between your home and business. This includes things such as electricity, homeowners insurance, property taxes and so on. With indirect expenses you can only deduct the amount that represents the percentage of the home that your home office is.

For example, if you own a 2,000 square foot home and your dedicated home office is 100 square feet; your home office percentage is 5%. This would mean that you can deduct 5% of your indirect expenses for your home office deduction.

While the home office deduction has many benefits, it doesn’t come without a few pitfalls. The first thing to consider is the increased likelihood of an audit. The IRS has been vigilant in checking on home office deductions, so it is vital to ensure your information is as accurate as possible.

 

Cell Phone

[h=2]Mixed Use[/h]You may use your cell phone for both business and personal use. In such a case, you won't be restricted from deducting cell phone expenses on your tax return as long as it is primarily used for business. Instead, you'll have to deduct the portion of your cell phone expenses that are tied to your business. For example, if your cell phone is used for your business 60 percent of the time, you can deduct 60 percent of your expenses.The 40 percent you spend communicating with friends and family is off limits.
[h=2]Deductible Cell Phone Expenses[/h]You can deduct the total amount of your cell phone bills, including any activation fees, on your tax return as long as the calls were business related. Include calls in which you spoke with customers, employees and co-workers, inquired about supplies and handled business-related disputes. Calls made to talk to potential clients, set up meetings, check your business account balance and learn about new business opportunities count as well. In addition, you can even deduct the money you paid for a new cell phone.

[h=2]Employee Use[/h]You can also deduct the business use of a cell phone if you are an employee rather than a business owner. You will only qualify, however, if your employer requires you to maintain a cell phone for business use. Calls you make after normal business hours do not count toward this deduction.

[h=2]Audit Proof[/h]In the event of an audit, your cell phone expenses may be scrutinized. In such a case, you will need to show that your expense deductions were legitimate. Maintain copies of your cell phone bills and keep receipts for new cell phones, cell phone accessories, batteries and chargers as well. In addition, keeping an itemized call list may help you prove you were dialing a customer rather than ordering pizza.

 

Till you get a nice letter in the mail a couple of years from now ... saying you have won the audit lottery.

 

It is you that doesn't understand. Even though the IRS accepted your return, that in no way means they will not do an audit in the future.

 

Nobody has said that you are, or were, dumb for going to H&R Block. What we are trying to explain to you is that even though the IRS has accepted your forms on e-file, you may not be done with them. The only thing that acceptance shows, is that the computer recognizes that the forms are properly filled out, not that there will not be questions raised when a person actually looks at them to insure the math and deductions are correct.