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Home Office deductions for part time job?

For 2019 I will be working full time, in addition to continuing as independent-contractor with home office (employed for company X, and, independent-contractor part time for company Y at the same time). I expect to receive a W2 and a 1099-MISC for 2019. So, I'm asking for figuring out my estimated 2019 taxes and planning for 2019 expenses. Will home office still be a write off for independent contracting? Is there a minimum of how many hours or 1099-MISC income is needed to have the home office expenses write off?  (Note, this question is the home office for independent contracting only, I understand the distinction for a requirements to write off home office as an employee and that would not apply to my case)

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Home Office deductions for part time job?

No, there is no minimum requirement of hours, however, there is a requirement that you show a profit. A home office can't create a loss. The easiest way to calculate how much to pay for estimated payments if you have no idea what your income will be is to caluclate your gain each quarter and multiply that by 15.3%, to cover the Social Security and Medicare taxes.

Do you qualify for the home office deduction?

Whether you're self-employed or an employee, one requirement for the home office deduction is that you use a part of your home as your principal place of business.

This doesn't necessarily mean that the majority of your business activities need to take place in your home office.

What it means is that you use your home office regularly and exclusively to administer or manage your business, and that substantial administration or management activities for your business are not conducted at any other fixed location.

Here's an example: Larry just started a new consulting business, and has set aside a spare bedroom as his office which he only uses for business purposes. Currently about 85% of his time is spent outside the home, meeting potential clients in various restaurants and coffee shops. However, he does all his scheduling, planning, bookkeeping, etc. from his home office. These administrative and managerial activities qualify his home office as his principal place of business, even though he's spending the majority of his time outside of his home office.

If you can carve out a little nook in your home that you can dedicate solely to your business affairs, you’re setting yourself up for a great home office tax deduction. It does not have to be a separate room, as a desk in the corner of the kitchen will qualify. But it does have to be used exclusively for business tasks, so the kitchen table probably does not qualify.


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New Member

Home Office deductions for part time job?

No, there is no minimum requirement of hours, however, there is a requirement that you show a profit. A home office can't create a loss. The easiest way to calculate how much to pay for estimated payments if you have no idea what your income will be is to caluclate your gain each quarter and multiply that by 15.3%, to cover the Social Security and Medicare taxes.

Do you qualify for the home office deduction?

Whether you're self-employed or an employee, one requirement for the home office deduction is that you use a part of your home as your principal place of business.

This doesn't necessarily mean that the majority of your business activities need to take place in your home office.

What it means is that you use your home office regularly and exclusively to administer or manage your business, and that substantial administration or management activities for your business are not conducted at any other fixed location.

Here's an example: Larry just started a new consulting business, and has set aside a spare bedroom as his office which he only uses for business purposes. Currently about 85% of his time is spent outside the home, meeting potential clients in various restaurants and coffee shops. However, he does all his scheduling, planning, bookkeeping, etc. from his home office. These administrative and managerial activities qualify his home office as his principal place of business, even though he's spending the majority of his time outside of his home office.

If you can carve out a little nook in your home that you can dedicate solely to your business affairs, you’re setting yourself up for a great home office tax deduction. It does not have to be a separate room, as a desk in the corner of the kitchen will qualify. But it does have to be used exclusively for business tasks, so the kitchen table probably does not qualify.


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