About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (September 1, 2021)

handle is hein.crs/goveelh0001 and id is 1 raw text is: aCongressional SResearch Service The Home Office Tax Deduction September 1, 2021 The home office deduction allows certain taxpayers to deduct expenses attributable to the business use of their homes. In response to public health concerns surrounding the Coronavirus Disease 2019 (COVID- 19) pandemic, many workers transitioned to remote work or work-from-home arrangements, increasing interest in this deduction. However, employees who have moved from onsite work to working from home as a result of the pandemic are not able to claim this benefit for the work they do for their employers. This Insight summarizes the home office deduction eligibility, calculation methods, and costs. Eligibility Expenses related to a taxpayer's home generally are not tax deductible. However, some taxpayers may deduct expenses attributable to the exclusive and regular business use of a portion of their home (26 U.S.C. §280A). There are three main categories of business use of a home office that qualify for the deduction: 1. The home office is used as the taxpayer's principal place of business. For taxpayers who conduct most of their business outside the home, a home office used as the primary location of administrative or management activities (e.g., billing) qualifies. 2. The home office is used to meet or serve patients, clients, or customers. 3. A separate structure not attached to the home is used for business (e.g., workshop). The exclusive use condition requires that an area of the home be used only for business and never for personal uses, by the taxpayer or anyone in the taxpayer's family. For example, a room would generally fail the exclusive use test if the taxpayer's child uses it to do homework, even if the taxpayer only uses it for business. There are limited exceptions to the exclusive use condition for wholesale or retail sellers and licensed day care operators. Can Employees Claim a Home Office Deduction? Employees are currently ineligible to claim the home office deduction for work they do for their employers. Before 2018, in some cases employees could deduct the business use of their home as a miscellaneous itemized deduction. (This benefit was unavailable to taxpayers who claimed the standard Congressional Research Service https://crsreports.congress.gov IN11736 CRS INSIGHT Prepared for Membersand Committeesof Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most