Finished basement tax deduction

Forum|Forum|1 year ago
February 5, 2025
2 replies
35 views

I am a software engineer working from home all 5 days of the week.

I finished my basement last year and in one portion of the finished basement, I have setup my desk, laptop and monitor. Do I qualify for any tax deduction?

Prior to finishing the basement, I had setup the same desk, laptop and monitor in the same area; the only difference being it was unfinished.

ItsDeductible Online

xmasbaby0

Level 15

Are you a W-2 employee?

W-2 employees cannot deduct job-related expenses on a federal return. Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond. Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

ThomasM125

Level 15

If you use the space exclusively for the business and you are self-employed then you can mostly likely take a home office deduction for it. It would have to be the principle place of your business. You can see this Intuit article for more on this.

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