Working from home? Home office deduction?

By
Education & Training with KLSM CPA Firm, PLLC

In light of the COVID 19 pandemic, many people now find themselves working from home. You may have experienced an increase in your household expenses and may now be wondering if you qualify for a home office deduction in 2020. The key points below outline who will and will not be eligible for a home office deduction in 2020. 

Who cannot claim home office deductions?

  • Employees – W-2 employees do not qualify for home office deductions regardless of the amount of time they work from home. 

Who can claim home office deductions?

  • Self-employed and small business owners – Small business owners and self-employed individuals who use part of their home to conduct business may be eligible. 
  • Regular and exclusive use – Your home office must be used in your normal course of business and only for business purposes. Meaning, there shouldn't be any beds, televisions, treadmills, etc. in your office space. 

Do you have to be a homeowner?

  • No. Homeowners and renters are eligible for this deduction as long as their home office meets the requirements. 

Comments (3)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Krystin,  Great information you are pasting on to us with what we can and can't do.  You need to blog more, you have great information.

 

Jun 03, 2020 09:14 AM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Krystin.

My dad had one of those, I never figured it out until I was in high school. 

Jun 04, 2020 01:30 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have always claimed a home office deduction and I measured out the area that is specifically used as my office.

Jun 04, 2020 06:20 AM