Home Office Deduction
The rules allowing a home office deduction if you’re self-employed generally require that the space be used regularly and exclusively —
- as a principal place of business,
- as a place to meet or deal with clients and customers in the normal course of business, or
- “in connection with” the business if the space is a separate structure from the residence (e.g., a barn or detached garage).
In our always-connected, always-on business environment, it isn’t unusual for employees to work from home on a regular basis too.
When you’re an employee (rather than self-employed), you have to meet one of the above requirements and the so-called employer convenience test. This test is hard to satisfy, unless your employer doesn’t provide you with an appropriate space in which to get your work done.
If you are regularly working from home because your employer doesn’t provide you with appropriate space from which to perform your job, and you are not currently claiming a home office deduction, we should talk. It could be that you’re entitled to some substantial additional itemized deductions!
Posted Sep. 4, 2014/wittenbergcpa.com