VIRTUAL LAW OFFICE IN NEW YORK

According to a recent opinion from the New York City Bar Association:

"A New York lawyer may use the street address of a virtual law office ("VLO") located in New York state as the "principal law office address" for the purposes of Rule 7.1(h) of the New York Rules of Professional Conduct (the "New York Rules" or the "Rules"), even if most of the lawyer's work is done at another location. In addition, a New York lawyer may use the address of a VLO as the office address on business cards, letterhead and law firm website. Given the lower overhead, improved encryption systems, expansion of mobile communication options, availability of electronic research, and the ease of storing and transmitting digital documents and information, VLOs are becoming an increasingly attractive option for attorneys throughout the country. A New York lawyer who uses a VLO must also comply with other New York Rules, including Rules 1.4, 1.6, 5.1, 5.3, 8.4(a) and 8.4(c).

A New York lawyer may need to consider additional issues, such as whether the contemplated arrangement complies with relevant substantive laws and court rules, and the professional conduct rules of other jurisdictions. These additional issues fall outside the jurisdiction of the Committee on Professional Ethics (the "Committee"), which is limited to interpreting the New York Rules.[1]"

The full opinion can be found at the following link:

http://www.nycbar.org/ethics/ethics-opinions-local/2014opinions/2023-formal-opinion-2014-02

TAX TIP - HOME OFFICE DEDUCTIONS

I am one of those attorneys who is office home based and this article comes from COHEN GREVE & COMPANY CPA, P.C., Certified Public Accountants:

"Electing Safe Harbor Method for Home Office Deduction

Many small business owners take a deduction for the qualified business use of their home under IRS Section 280(A). Before 2013, eligible taxpayers determined the deduction by calculating, allocating and substantiating actual home expenses related to a qualified business use. For many, the administration, record-keeping and compliance was a burden.

Beginning in 2013, comes a new Safe Harbor method for determining the home office deduction. This new provision simplified the calculation, but it does not change the need to satisfy all of the eligibility requirements. It may also reduce the audit risk, since the deduction has a maximum deduction amount of $1,500.

Most taxpayers eligible for home expense deductions for a qualified business use under IRS Section280 are eligible for the optional Safe Harbor method. This allows individual taxpayers who use their homes for qualified business use, storage of inventory or day care services, subject to other limitations under the tax code. We advise taxpayers to review the provisions under IRS Section 280A as well as subsections 280A,(c)(1),(2),(3),(4),(5), as well as Rev. Proc 2013-13 for the Safe Harbor election.

The use of the Safe Harbor method does have drawbacks. Since it is an alternative to calculating actual expenses, some costs relating to qualified business use will no longer be deductible on Schedule C in the tax year elected. In addition, any carryover deductions from prior years are deferred into a year when the election is not made.

We advise taxpayers to evaluate the restrictions before making the decision to elect the Safe Harbor method. Since the safe harbor is an irreversible election for that tax year, be sure of your decision. An amended return cannot be filed to change your determination.

If you have any questions about the Safe Harbor method, please call our office at 516-877-1900. We look forward to hearing from you."