Home Office Tax Question

4 Replies

Morning,

            I was wondering that because I am in the military and Teleworking from home can I deducte anything that I buy in regards to working from home? Like computer moniors, chairs & associated items? 

Thanks.

Hi Andrew, 

You can deduct items for your home office related to your real estate investing. If you do not have a corporation or multi-member LLC formed, you can count the home office deduction on your Schedule E of your tax return that shows the rental property activity. The rule is that your home office needs to be solely dedicated to the real estate investing activity.

Originally posted by @Andrew Pettit :

Morning,

            I was wondering that because I am in the military and Teleworking from home can I deducte anything that I buy in regards to working from home? Like computer moniors, chairs & associated items? 

Thanks.

 If you are asking home office deduction for being working from home, then no. You don’t get the deduction for employee expenses anymore. 

If you have a home office(please google the requirement) for the real estate activity, then you can take a deduction as mentioned by our colleague in the previous post. 

@Andrew Pettit

3 separate issues are mixed together here, creating confusion.

1. Can you deduct any expenses related to your work as a military (which really is not important in this case) employee? The answer is no, you cannot if you're a W2 employee. Does not matter who you work for and whether you work from home or not. Your employer might be able to reimburse you for these expenses if they chose to do so.

2. Can you deduct business expenses, such as home office, if you're in a real estate business? Yes, as long as you do have a bona fide real estate business. For example, if you're planning to buy some rental properties but have not bought any yet - then you do not yet have a business.

3. For one reason or another, you may be restricted from claiming a home office deduction. It has a number of special rules. However, computer and office furniture are NOT part of the home office deduction. You can take these deductions even if you are not eligible to claim home office, as long as your computer and office furniture are used for business.

@Andrew Pettit

Employee expenses used to be deductible as an itemized deduction but for the time being no longer eligible to be deducted. 
It may be totally different from a state perspective.

Items like a computer - it depends if it is used for your business. Also, if it is not 100% used for business it may need to be pro-rated.