What Is The Home Office Deduction

The home office tax deduction is changing big time for tax year 2018.
What is the home office deduction. Effective with the 2018 tax year most employees can no longer take a deduction for unreimbursed business expenses including home office expenses. You need to determine the square footage of your entire home and the square footage of your office. Only a few specific categories of employees can take this deduction on schedule a. The home office deduction is not a red flag for an irs audit.
If you work at home read closely to save for this filing year as well as the next. Home office deduction under the trump tax plan if the 2016 election had gone another way under the previous irs provisions millions of more people would be able to take the home office deduction. The simplified method can make it easier for you to claim the deduction but might not provide you with biggest deduction. Simplified square footage in 2013 the irs made it easier to claim the home office deduction.
The home office deduction is only for self employed business owners. For example if your home office covers 1000 square feet but your entire home is 4000 square feet your home office percentage would be 25. Deducting a home office is treated differently depending on your business type.