[The Nicks Fix]

Money Magazine


June 1997
How to keep your home office in tune with the IRS

Now, Fleetwood Mac's Stevie Nicks can't stop thinkin' about yesterday -- because the IRS won't let her.

On her 1991 tax return, Nicks, whose band's '70s hit "Don't Stop (Thinking About Tomorrow)" became a Clinton Administration anthem, deducted $60,160 in expenses for a home office in her Arizona resid Nicks, who declined to speak with MONEY, is currently fighting an uphill battle against the feds in tax court. Based on my experience as a tax lawyer and forer IRS audit group manager, here's what N In order to keep the write-offs, Nicks must first prove that the home office was her "principle place of business." That will be difficult, since the IRS believes a musician's work is done mainly in Nicks must also show that her home office was used "regularly and exclusively" for business. That argument could fall flat, especialy for the write-offs attributed to the "outdoor portions" of her h My advice to Stevie and you: In order to write off a legitimate home office, keep a separate business phone line there and take photographs to show that you have no personal items in this part of your office.


Thanks to Jodi for sending this article to The Nicks Fix.
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