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Yolanda, your tax client, recently started her own business as a healthcare consultant and set up an office in her home used exclusively for

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Yolanda, your tax client, recently started her own business as a healthcare consultant and set up an office in her home used exclusively for client meetings and other business-related activities. Yolanda has heard that having a home office can be a red flag for tax purposes and wants to make sure she carefully follows all the rules in case of an IRS audit. Yolanda has no other place of business, and her home office is the most significant place for her business. The following year, Yolanda tells you her consulting business is doing well. She has one large client, and her responsibilities to the client involve assisting the lead researcher at a medical facility. She rarely has clients at her office anymore since the researcher wants her at the medical facility from 8 a.m. to 5 p.m. during the workweek. For your initial post, address the following: 1. What advice would you give Yolanda regarding the types of home office business expenses she can deduct and which records she should maintain? 2. What impact does the new client relationship have on Yolanda's ability to deduct self-employment expenses, including the home office deduction? Consider the distinctions between employees and independent contractors. 3. What issues should the medical facility be concerned with regarding Yolanda's role at the facility?

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1 Home Office Deduction and Expenses Yolanda can still deduct expenses related to her home office even if she rarely has clients visiting These expens... blur-text-image

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