Will claiming home office deduction as a self-employed person trigger an IRS audit?

I'm trying to file my taxes for last year and could really use some advice. I'm self-employed as a pet sitter/dog walker with very little income (definitely below poverty line). My tax preparer is telling me I shouldn't take the home office deduction because she says it'll automatically trigger an audit. But without it, I owe quite a bit more since it was one of my main expenses besides mileage. The space I used was a dedicated alcove in my apartment with walls on three sides and a built-in desk. It was about 95 square feet in my 995 square foot apartment (roughly 10%). I exclusively used this space for business stuff - client calls, invoicing, scheduling, etc. My expenses were pretty minimal otherwise - just my phone, waste bags, and some online advertising. I've since moved to a different place and don't have photos of my old office space. Is my tax preparer right that claiming the home office deduction is asking for trouble? Should I just pay the extra and forget about it? The difference is significant for me given my income level.

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18 comments

Aisha Abdullah

•8M

That advice about home office deductions automatically triggering audits is outdated. While home office deductions were once considered a "red flag," the IRS has simplified the process with the "simplified option" for home office deductions. For your situation, you have two options: the regular method (calculating actual expenses) or the simplified method ($5 per square foot, up to 300 square feet). The simplified method would give you around $475 deduction (95 sq ft × $5), while the regular method might give you more but requires more documentation. Your space sounds like it qualifies since it was used regularly and exclusively for business. The fact that it was a defined alcove with walls actually strengthens your case - it's clearly a separate, dedicated space. Not having photos isn't ideal, but it's not a dealbreaker. If you can describe the space and its business use accurately on your return, you should be fine.

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Aisha Abdullah

•8M

Yes, a dedicated corner of a bedroom can still qualify, but you must use that specific area exclusively for business. The key is that you don't use that desk and that corner for anything else besides your business activities. The IRS doesn't require physical walls or separation - they require exclusive business use of a clearly identifiable space. Measure the specific area you use exclusively for business (just the desk and immediate surrounding area), and use that square footage for your calculation. Just be honest about the measurement and make sure you're only counting space that is truly used exclusively for business.

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Yuki Tanaka

•8M

I've been through something similar with my home-based consulting business. After trying to navigate all the confusing tax rules, I discovered a tool called taxr.ai (https://taxr.ai) that's been a game-changer for my home office deduction situation. I was scared of taking deductions because my previous accountant also warned me about audits. The tool analyzed all my documents and showed me exactly what I could legally deduct without raising red flags. It confirmed that my home office setup (which sounds similar to yours) was totally legitimate to claim. The best part was it gave me specific documentation recommendations so I'd be prepared if questions ever came up later. For your situation, it would probably tell you exactly how to describe your previous space properly.

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Yuki Tanaka

•8M

It actually reviews your specific tax documents and situations, not just generic advice. You upload your documents or explain your situation, and it uses AI to analyze everything according to current tax rules. It's much more personalized than those generic tax websites with articles. Yes, it absolutely works for prior year returns! That's actually one of the more useful features. It helps identify what documentation you need for previous years and helps you properly categorize past expenses even when your memory or records aren't perfect. It's particularly helpful for self-employed people filing for past years since those returns tend to have more complexity.

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MidnightRider

•8M

Just wanted to follow up - I tried taxr.ai after seeing this thread because I was in a similar situation with a home office deduction from 2022 that I wasn't sure about claiming. The analysis it gave me was incredibly detailed and showed me exactly how to document my space properly even though I'd moved since then. It walked me through the whole calculation and even pointed out a few other deductions I was missing related to my business. Ended up saving about $940 more than my original calculations! Definitely worth it for anyone who's self-employed and uncertain about home office rules.

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Andre Laurent

•8M

I had a somewhat different experience that might be helpful. After claiming a home office deduction, I did get a letter from the IRS with questions. I tried calling them for weeks and could never get through - literally spent hours on hold only to get disconnected. Finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent explained exactly what documentation I needed to provide for my home office deduction and gave me a direct fax number to send it to. All resolved in one call instead of months of stress. If you do claim the deduction and have any issues later, this service is a lifesaver for actually getting through to a human at the IRS.

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Andre Laurent

•8M

It's not a scam - they use a proprietary system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, they call you and connect you directly to that agent. Think of it like having someone else wait in line for you, then texting when they reach the front. No, it's definitely real. The service doesn't bypass anything - they just have technology that holds your place in the queue. When I used it, I got a text when they reached an agent, then joined the call. I was talking to a legitimate IRS employee who had all my information and completely resolved my issue. I was skeptical too until I tried it and got my issue resolved in one day after weeks of failed attempts.

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Jamal Washington

•8M

I have to apologize for my skepticism on that Claimyr service. I was so frustrated after trying to reach the IRS for literally months about a home office audit letter that I decided to try it as a last resort. I was shocked when they actually got me through to an IRS representative in about 20 minutes. The agent was able to pull up my case, explain exactly what was missing from my documentation, and give me a specific timeline for resolving it. I've since submitted the additional information they requested and my case is closed. If anyone else gets questioning about their home office deduction, don't panic - and definitely don't waste days on hold like I did! Getting a real person on the phone made all the difference.

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Mei Wong

•8M

Former tax preparer here. You should know that the advice about home office deductions automatically triggering audits is extremely outdated. In my 12 years of practice, I've had plenty of clients claim legitimate home office deductions with zero issues. Your space absolutely qualifies based on your description - it's a defined area used exclusively for business. The 10% of your apartment seems reasonable and accurate. What matters most is: 1. You used it regularly for business 2. You used it exclusively for business (no watching Netflix there!) 3. It was your principal place of business for that activity Document everything now while your memory is fresh - draw a floor plan, write down descriptions, note what business activities you conducted there. This documentation will help if questions ever arise.

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Mei Wong

•8M

A detailed written description with measurements and a hand-drawn floor plan is absolutely sufficient documentation. Date it and keep it with your tax records. Including details about the built-in desk, the three walls forming the alcove, and how you used the space for specific business activities strengthens your case. Adding some supporting evidence like business emails, client invoices you created there, or phone records showing client calls would be helpful supplementary documentation, but not strictly necessary. The IRS understands that people move and may not have photographs of previous spaces. Your contemporaneous written records are considered valid documentation, especially when they're detailed and consistent with your business activities.

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