Home office - is rent + utilities deductible for LLC?

EMS0 — Wed, 13 Nov 2024 22:14:34 GMT

Hi. I WFH and have a SMLLC. How would I go about doing the standard or nonstandard deduction for my office space? And would food/meals ate while working count for the meals deduction?

Thanks in advance for your help!

Re: Home office - is rent + utilities deductible for LLC?

marctu — Wed, 13 Nov 2024 22:27:20 GMT

This is where we start: The Home Office Deduction

I am going to use the article summary, from this Turbo Tax, which is found in the link:

You may qualify for the home office deduction if you use a portion of your home for your business on a regular basis. a home can include a house, apartment, condominium, mobile home, boat or similar structure.
Generally, your home office must be either the principal location of your business or a place where you regularly meet with customers or clients, and you usually must use the area exclusively for your business.
The rate for the simplified square footage calculation is $5 per square foot, with a maximum of 300 square feet.

If you meet the second bullet point above, the Turbo Tax program will lead you through questions on whether you want to take the simplified $5 per square foot or enter the expenses of the home as a whole, which would include, rent and utilities, and potentially ones just for the home office itself, if applicable.

Meals when you are working in the home office for the SMLCC would not be deducible. These are considered a personal expense. A business meal is defined as any food or drink that's purchased for business-related purpose, though these meals would need to be with a clients, vendors, etc.

Thank you for the question @EMS0

All the best,

Marc T.

Turbo Tax Expert

27 Years of Helping Clients

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Home office - is rent + utilities deductible for LLC?

Re: Home office - is rent + utilities deductible for LLC?