I own an S Corp and my home office qualifies for the home office deduction. I have a reimbursement plan set up with the S Corp than includes a small percentage of my mortgage interest, internet, hoa dues, etc. However, I'm wondering if the S Corp can just reimburse me using the safe harbor method ($5 per square foot up to 300 square feet). That would make it easier for me since I would not have to reduce the reimbursed mortgage interest when I fill out my personal taxes. My home office is over 300 square feet so I would qualify for the maximum of $1500 that the S Corp could reimburse me and that the s corp could report as a reimbursement expense. Thank you for all you help!!
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No. Unfortunately, the IRS revenue procedure that created the simplified method for the home office expense deduction specifically prohibited using the simplified method for home offices that are reimbursed under reimbursement plans.
See page 5 of IRS Revenue Procedure 2013-3 by clicking here.
No. Unfortunately, the IRS revenue procedure that created the simplified method for the home office expense deduction specifically prohibited using the simplified method for home offices that are reimbursed under reimbursement plans.
See page 5 of IRS Revenue Procedure 2013-3 by clicking here.
Hi. I know this is an old thread, so I hope people are still paying attention to it. I am a single person s-corp and have an accountable plan and am using it to claim my home office. How should this be reported on my 1120S? Turbo Tax puts
Other deductions (attach statement) . . . . . . . . on line 19 of the 1120.
So my question is how should I break out the expenses for the office on the additional information statement. Currently it shows as "Reimbursed Employee Expenses", but I don't think that will be considered adequate. Should I break it out by each component (Interest, Tax, Insurance, Depreciation, HOA Fees). Utilities, internet, and other items that are reimbursed are already broken out.
Finally, should corporate cell be listed as it own item, lumped in with utilities, or as telephone?
Thanks!
I am in the community for the first time. I am doing some research on employee home office expenses reimbursed by the employer. The question is whether depreciation needs to be included in the reimbursement? Some say since depreciation is not an out-of-pocket expenditure it should not be reimbursed. This may go against the allowed or allowable concept. The theory is the depreciation is not a DEDUCTION but a REIMBURSEMENT and therefore does not come under the allowed or allowable rules. The employee chooses what expenses to submit for reimbursement and simply doesn't include the depreciation. What are your thoughts? Thanks for any help in advance.
Unreimbursed employment expenses is no longer deductible, so if your employer is reimbursing you any of your home office expenses, that is great.
The reimbursement is not taxable, nor is it reported on your return. Your employer can determine what they want to reimburse for, but they are not required to reimburse anything.
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