Home Office Audits: What the IRS Actually Looks For
Home office deductions are one of the most commonly reviewed areas during an IRS audit. Many taxpayers do not realize that IRS Revenue Agents often request photos of the workspace to verify that it meets the exclusive use requirement.
Here are key points to understand before claiming the deduction:
• Your home office must be used exclusively for business.
• Guest rooms, shared spaces, and play areas rarely qualify.
• A desk in a bedroom can be denied if the room is clearly used for something else.
• Photos often reveal personal items or mixed-use areas that disqualify the space.
• The rules are the same for both Oregon and Washington taxpayers, since this is a federal deduction.
• The simplified method can reduce audit exposure but may also reduce the deduction. Choosing the right method matters.
As a licensed Enrolled Agent and Oregon Tax Consultant, I help clients understand what truly qualifies and assist during IRS exams when home office deductions are questioned. If you are unsure whether your workspace meets IRS requirements, I can review your situation and provide clear guidance.
Local. Licensed. Virtual.
Serving clients across Oregon and Washington.
