From the sounds of struggling cars I'm hearing outside, it seems our streets have still not been plowed.
That's nuts. Don't you guys pay taxes there? WTF?
It IS nuts. And not only do I pay taxes, but I pay a lot more than I used to, since this is now listed as my work location as well as my residence.
I guess then you are allowed to write off these office expenses?
Don't really have any office expenses, since they gave me all the equipment I need. Would be nice to be able to get a tax refund for roads that can't be traversed, however. Lol
You can claim the "office"/room calculated as part (%) of the overall house cost.
But LTG isn't a contractor. He's an employee. Are you talking about the home office deduction? Last I checked, you couldn't do that as an employee. Did something change?
And I don't itemize anyways, so it doesn't really matter. The standard deductions I get from being a homeowner and having 3 kids far outweighs anything I'd get otherwise.
Yup.
I checked again on the IRS site, and they explicitly say in IRS Tax Tip 2021-136 (September 15, 2021) that employees are not eligible to claim the home office deduction. You have to be self-employed as a proprietor, partner, or corporate officer. Employees working remotely due to the pandemic do not qualify.
In any case, that deduction can be a pain if you sell your home, because of the recapture requirements. So it's kind of a double-edged sword.
I used it pretty effectively for years doing contract work on the side, including tech consulting, various music gigs, and worship arts work for the church. But several years ago the church decided to put me on staff because the IRS kept tightening the rules about what qualified as a contractor. My contract specified that I was not paid for rehearsing or playing music for worship services, only for the planning, coordination and artist development I did from the home office. But the tax advisers said that was a distinction that the IRS wasn't likely to recognize, which would have incurred penalties for the church. So they put me on staff and that leaves little time or flexibility to pursue other contract work. So now I've got two jobs and no home office deduction.