The Home Office Deductions  The Home Office Deductions  The home
office deduction is probably the most misunderstood deduction -
misunderstood by non-tax professionals, of course - among all
the entries in the tax code.  For years people were afraid using
the home office deduction would raise an automatic red flag for
auditors, but in recent years Congress has relaxed the rules and
the home office is far less likely to attract attention. Keep in
mind that even if you are audited, as long as you have prepared
your tax return â€“ whether corporate or personal â€“ accurately
and under the provisions of the law, an audit is, at worst, a
hassle.  To understand the rules regarding home office
deductions, we'll start with the basics. Your home office
qualifies as your principal place of business if:    • You use
your office "exclusively and regularly for administrative or
management activities of your trade or business"; and   • "You
have no other fixed location where you conduct substantial
administrative or manage