Tax Tuesdays

7 Home Office Tax Deduction Considerations

We’re working from home. Why not take a deduction for it?

I’m going to try something new here, and we’ll see how it turns out. The thing is that I’m weirdly passionate about taxes, but find that others just want to tuck the information into their back pocket for April 15th.

Photo by Christin Hume on Unsplash

1. The Home Office Tax Deduction is NOT for Employees

Let’s get this out of the way first: if you’re an employee, you’re not getting a deduction (if you are an S Corp owner/employee, see point #7).

2. Your Office Must be a Dedicated Space

One of the sticky points for the home office tax deduction is that the area must be SOLELY used for your business.

3. Depreciation On Your House

Now you have a dedicated office space. What’s next?

4. Claim All Your Direct & Indirect Expenses

The home office tax deduction is broken down into two buckets of expenses: direct and indirect.

5. Don’t Forget Utilities!

One very common indirect home office tax deduction is your utilities.

6. The Simplified Method Can Save a Lot of Headaches

Want to avoid dealing with depreciation? Don’t have time to calculate your utilities?

7. S Corps Can Take This Deduction, Too…If You Set It Up Right

Have you gotten all complicated with your business because someone convinced you that you could save money if you have an S Corporation?

Accountant, Professor, Entrepreneur. Loving my household of struggles (seizures, anxiety, dysautonomia, autism, dysgraphia) while training a poodle service dog