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Deductions & credits
Thank you for the detailed response to my question. I am sure many Small Business Owners are getting confused when have to deal with Home Office deduction, specifically those with S corp election. Please correct me if I am wrong. I will try to describe appropriate action to be taken from my prospective. In order to have this deduction I should create (write on piece of paper) Accountable Plan, which consists of list of expenses, based on accepted by IRS types of expenses related to Home Office, carefully calculate everything to make no mistakes (keep supporting documents), per some period of time of the tax year (month, quarter, year) and pay this amount from Business Bank Account to my Personal Bank Account and categorize this transaction in Quickbooks as Business Expense, like any other expenses (shipping, advertising, subscriptions, etc.). And this is how I get reimbursed for using home office as Business Owner running S corp. Is this correct?