Home Office Tax Question

[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.

[Michael Plaks]

@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.