Currently, if workers are getting a W-2 from their employers, they are not eligible to deduct the expenses tied to having an office at home. Under the Internal Revenue Service code, only self-employed individuals or business owners who exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. This includes a place where you greet clients or customers, conduct your business, store inventory, rent out or use as a daycare facility.
Law makers should address the needs of businesses and individuals, there is a way to offer a boost to every worker in this country, it's time to address this issue – even if it is for one or two years. Almost 43 percent of the American workforce is working from home full-time.
How the deduction works?
To claim the home-office deduction in 2021, you don’t have to be a homeowner & apartments are eligible, as are mobile homes, boats or other similar properties, according to the IRS.
There are two ways that eligible taxpayers can calculate the home-office deduction.
In the simple way, you can take $5 per square foot of your home office up to 300 square feet, giving the method a $1,500 cap.
The other way of the deduction could save you more, but it requires keeping track of all related expenses and it's highly recommended to be working with a licensed tax consultant. Voyage Tax Consulting helps clients keep track of all their actual expenses. You can write off up to 100% of some expenses for your home office, such as the cost of repairs to the space.
You can also deduct a portion of other expenses, including utilities, mortgage payment, rent payment and other expenses based on the size of your office versus your home.
Voyage Tax Consulting team will help you maximize your savings, use the following link to schedule your initial virtual or in-person appointment.
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