As an S Corporation owner you are considered an employee of the S Corporation and should be receiving a W-2. Employees working from home can't take the home office deduction, even if you've been asked to work from home due to COVID-19. This has been in place since 2018, when the Tax Cuts and Jobs Act was signed into law.
However, shareholders can be reimbursed for an allocated portion of their home office expense including maintenance expenses, mortgage interest, property tax, insurance, utilities, home internet, trash, and repairs and maintenance providing the S Corp established an Accountable Plan.
Accountable plans provide a structured and legal way to deduct reimbursements for necessary expenses (like home office use and mileage) that would not typically be deductible by shareholders and/or employees on their personal tax return due to the change in the tax code with the Tax Cuts and Job Act. As long as the S-Corp and the shareholder/employees follow the accountable plan’s rules, the reimbursements are counted as valid business deductions, and the reimbursements are tax-free to the shareholder/employee.
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