Home Office Tax Deduction Employee
September 14th, 2009
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Question: What qualifications do I have to meet to be able to make Tax Deductions when working from home?
2008 was my first year of working from home. Now that tax time has rolled around I am unclear on if I can deduct certain expenses from from my taxes.
My biggest question is how do I know if I qualify or not? I am an employee of a company and I constantly read about this following language:
“In addition, if you work as an employee you can claim this deduction only if the regular and exclusive business use of the home is for the convenience of your employer and the portion of the home is not rented by the employer.”
What does this mean exactly? I understand the first part about the using your office space for only work related matters. I am unclear on the part about my employer and what that means.
Any help would be appreciated. I already understand what I can deduct if I qualify and how my office space must be used only for work related matters.
Answer: The second part of your quote there breaks down to:
Your office in home is because the company says it is needed or best for you to work from home. In other words you do not have an office at a centralized location, or the company does not have an office for you. It is for the employer’s convince, not yours. So you are not working from home just because you want to, the company allows it and encourages it or requires you to do so. (It can help save them money, it can free up additional work space, etc.)
If the company is paying you rent, so you are renting that office to them, then it is not a office in home for tax purposes. You would already be getting a benefit from your office, in that the company is paying you to have that space used for their business.
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