Pennsylvania BFR Adjusts Taxpayers’ Income Tax for Home Office Deductions

The Pennsylvania Board of Finance and Revenue (BFR), in a reconsidered order, addressed the taxpayers’ petition regarding their 2022 personal income tax. The dispute centered around whether the taxpayers were entitled to deduct business expenses from income received from a pass-through entity. The taxpayers claimed that they could deduct expenses related to vehicle usage and home office expenses based on a partnership agreement. The Board initially denied most of the claimed expenses due to a lack of documentation, but granted reconsideration upon the taxpayers’ request. After reviewing the evidence, the Board concluded that the taxpayers failed to substantiate the claimed ...