Legal Way to Deduct Home Office for Your Corporation

May 1st, 2022 at 12:09 PM

Here\'s the 2 boilerplate explanations IRS agents use to deny home office deductions:

1. IRS has disallowed your deductions for office-in-the-home expense because you have not established that is was for the convenience of your employer. Voluntary, vocational, or incidental use of part of your home in connection with your employment does not entitle you to a business deduction.

2. If you rent all or part of your residence to your employer and use the rented portion when performing services for the employer, you cannot deduct home office expenses.

Here\'s how to legally deduct home office for your corporation:

In addition, make sure you submit proof to your corporation that supports the deduction--for example:

Also, complete IRS form 8829 --showing your home-office expenses for the year. I recommend attaching this form to the corporate reimbursements, further documenting the office-in-home deduction.

Mark S. Fineberg, CPA

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