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Home office deduction

My business income shows on a K-1 and a W-2.  My business is run from home.  why can't i take the standard home office deduction?

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Level 6

Home office deduction

Ok ... so you have an S-Corp that issues you a K-1 form correct ?   

And the Corp doesn't own the home right ?   

And you properly pay yourself as an employee and issue yourself a W-2 ?   

 

If so as an EMPLOYEE you cannot deduct any employee business expenses from 2018 to 2025 (unless the rules are changed again).    And since the corp doesn't own the home then it cannot take any OIH expenses either. 

 

What the company  can do going forward  is set up an ACCOUNTABLE  REIMBURSEMENT plan ...  

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-a....

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Highlighted
Level 6

Home office deduction

Ok ... so you have an S-Corp that issues you a K-1 form correct ?   

And the Corp doesn't own the home right ?   

And you properly pay yourself as an employee and issue yourself a W-2 ?   

 

If so as an EMPLOYEE you cannot deduct any employee business expenses from 2018 to 2025 (unless the rules are changed again).    And since the corp doesn't own the home then it cannot take any OIH expenses either. 

 

What the company  can do going forward  is set up an ACCOUNTABLE  REIMBURSEMENT plan ...  

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-a....

View solution in original post

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Level 10

Home office deduction

This is one of many reasons why people with corporations pay much more in taxes (and/or IRS audits) by doing it themselves.  You really should be going to a good tax professional for the corporation.

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