I've been self-employed for 20 years now (sole prop) and work out of my home office. I file taxes jointly with my husband who is not self-employed and we have always itemized. This year, it looks like the standard ded may give us a little bigger refund than itemizing. Is this a flag for the IRS - because of the change? Will it be a flag for the IRS if we itemize the year after? Is there a problem with me/us taking the standard deduction as a sole proprietor? Any info you can give me will be appreciated, these new tax laws are confusing! Thank you!
No. Electing to take the Standard Deduction when it is more beneficial for you to do so, will not by itself raise a flag with IRS. If you decide to itemize your deductions next year, rather than take the Standard Deduction you are free to do so, as well.
Even if you do decide to take the Standard Deduction, this year, since you are self-employed, you may still take a deduction for home office expenses and allocate your mortgage interest (if applicable) and property taxes, etc. as you have in the past.
No. Electing to take the Standard Deduction when it is more beneficial for you to do so, will not by itself raise a flag with IRS. If you decide to itemize your deductions next year, rather than take the Standard Deduction you are free to do so, as well.
Even if you do decide to take the Standard Deduction, this year, since you are self-employed, you may still take a deduction for home office expenses and allocate your mortgage interest (if applicable) and property taxes, etc. as you have in the past.
In fact, you are required by law to claim all of your Schedule C expenses.