In Legal Terms: Home Office

Can I deduct home office expenses while I'm working from home? It depends. The short answer is, probably not. If you work full-time for someone else, you're out of luck. "Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home," the IRS noted last month. https://www.cnn.com/2020/10/19/success/wfh-home-office-tax-deduction/index.htmlThe people most likely to be eligible to claim the home office tax deduction are those who are self-employed -- meaning they run their own business out of their homes, or are independent contractors or freelancers working on assignments from home. But they must meet the following rules: You may only deduct expenses for the portion of your home that is used exclusively and regularly for business and your home must be your principal place of business. And you may not deduct expenses related to anything that is used for both your work and your home life.Business Use of Your Home https://www.irs.gov/pub/irs-pdf/p587.pdfIf you CAN claim a deduction, here's more guidance : https://www.irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-the-home-office-deductionhttps://homebusinessmag.com/management/legalese/3-legal-issues-faced-home-based-businesses-prepare/Do you have a suggestion for a show topic for 2021? Email us: [email protected] Hosted on Acast. See acast.com/privacy for more information.