Pennsylvania BFR Partially Grants Tax Relief for Taxpayers’ Home Office Expenses

The Pennsylvania Board of Finance and Revenue (BFR) partially granted relief to taxpayers in their petition for review of a refund of personal income tax for 2022. The dispute centered around whether the taxpayers were entitled to deduct business expenses from income received from a pass-through entity. The taxpayers claimed unreimbursed business expenses related to vehicle expenses, vehicle depreciation, and home office expenses against their partnership income. After reviewing the evidence provided, the Board concluded that the taxpayers did not provide sufficient proof to substantiate the claimed vehicle expenses and vehicle depreciation as legitimate business expenses. However, the Board determined ...