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Code Section 162(a) Rental Expense allowed for personal residence.
Due to the pandemic, millions of taxpayers are now working from home. Although the IRS has not yet issued any guidance on whether they would receive special deductions, a current case was decided for the taxpayer. A taxpayer in a new case, Benton TC Summary Opinion 2020-12, 3/11/20 , worked out of a house in the suburbs and deducted the rent his business paid to use the place as an ordinary and necessary business expense. Generally, you can deduct rent paid by your business for use of a building, such as office building or warehouse, where you conduct business activities. But it’s not as clear-cut if you operate the business in a house normally intended to be used as a personal residence. The Taxpayer in this case relied on Code Section 162(a) , that allows Ordinary and Necessary business expenses Including rent. Code Section 162(a) states that " In general There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during ...
If You Receive An IRS Notice In The Mail
Eight Things to Know If You Receive an IRS Notice Did you receive a notice from the IRS this year? Every year the IRS sends millions of letters and notices to taxpayers but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox. Don’t panic. Many of these letters can be dealt with simply and painlessly. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry. If you receive a correction notice, you should review the correspondence and compare it with the information on your return. If you agree with the correction to your account, usually no reply is necessary unles...
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