04/23/2024

Tax Deductions for Home Office Professionals

Consider these tax issues if you claim home office deductions

Are you someone who works from home? If you are self-employed and meet specific criteria, you may be eligible to deduct a portion of your home office expenses. This deduction applies even if you conduct work in other locations. You can choose between deducting actual expenses that you can verify or utilizing a simplified method endorsed by the IRS for calculation purposes.

Let's Start with The Basics

Generally speaking, self-employed individuals are eligible for home office deductions if part of their homes are used "regularly and exclusively" as their principal place of business or a place to meet or deal with customers, clients or patients in the normal course of business. In addition, they may be entitled to take deductions for an area used to store products or tools for a business. They also may be able to deduct the costs associated with a separate structure, such as a detached garage or shed, that is used strictly for storage or other business purposes.

Important to note: Under current law, employees currently cannot deduct unreimbursed business expenses, including home office expenses.

Please select this link to read the complete article from OSAP Partner Clark Schaefer Hackett (CSH).