Deduct It!

Author: Attorney Stephen Fishman
Published: 2005 (2nd edition)

Another excellent reference volume from Nolo. Amongst the many gems of information:

• On the justification of using a home office regularly:
  "One court has held that 12 hours of use a week is sufficient."
  Just make sure to document it.
• Maximizing business deductions:
  Make notes in one's calendar, save e-mails from associates. Again, documentation.
• 12-month rule for expenses:
  "Under this rule, you may deduct a prepaid expense in the current year if the expense is for a right or benefit that extends no longer than the earlier of:
  • 12 months or
  • until the end of the tax year after the tax year in which you make the payment."
• Avoiding audits: keep the income-to-deduction ratio on your tax forms below 52%.

I have this out of the library; probably worth buying for reference.