2018 Home Office Deduction
You Need to Understand 2018 Tax Law Changes
The legal entity of the taxpayer is a determining factor when looking at the home office deduction.
Employees: The 2017 Tax Cuts and Jobs Act (TCJA) eliminated the 2% miscellaneous itemized deductions on Schedule A as a tax deduction. Accordingly, since this is where an employee in 2017 and earlier years would have deducted their home office expenses, employees may no longer deduct unreimbursed expenses for a home office beginning with the 2018 tax year.
Self-Employed Individuals: Self-employed individuals (Sch. C and single-member LLC owners) may be entitled to claim the home office (H/O) deduction. To qualify for the H/O deduction, the office must qualify as the business owner’s principal place of business. The business owner must meet clients/customers at the home office on a regular basis (incidental meetings do not qualify) OR the office is used exclusively and regularly for administrative or management activities of your business. Examples of qualifying activities include [Read more…] about 2018 Home Office Deduction