Announcement

Collapse
No announcement yet.

Home office deduction

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • cgossage
    replied
    @I Find this Humerus You might be able to deduct your home office. It depends if you are a W2 employee or independent contractor.

    If you are a W2 employee, you working at home has to be for the convenience of your employer and you have to spend more than half of your time there.

    Leave a comment:


  • jfoxcpacfp
    replied




    For my practice we rotate weeks of being on call from home which requires you to remotely log in into the EMR and such. I also have a room that I never use except for this work. Can I also deduct that room as office space since I am essentially taking call from home and making myself available? Also, the computer is mine and needs an upgrade. Can I deduct the cost of a new computer and internet bill as well?
    Click to expand...


    Not enough information to know, but I think probably not.

    Leave a comment:


  • jfoxcpacfp
    replied


    Are you offering or are you already booked out? If so message me rates as I am curious.
    Click to expand...


    I've messaged you.

    Leave a comment:


  • I Find This Humerus
    replied
    For my practice we rotate weeks of being on call from home which requires you to remotely log in into the EMR and such. I also have a room that I never use except for this work. Can I also deduct that room as office space since I am essentially taking call from home and making myself available? Also, the computer is mine and needs an upgrade. Can I deduct the cost of a new computer and internet bill as well?

     

    Leave a comment:


  • EJ at Dads Dollars and Debts
    replied
    Thanks for the info! Ah the advice of doing taxes on my own or not...this is a tough one. I did them on my own for a long time, then used an accountant for 2 years, then started doing it on my own...

    This year is quite complicated - small business with minor income, casualty loss with the fire, big charitable donations, superfund 529s...gotta figure out what to do. Are you offering or are you already booked out? If so message me rates as I am curious.

    Thanks!

    Leave a comment:


  • jfoxcpacfp
    replied




    You can still change it year to year, right? I thought any given year’s election, once made, is irrevocable.
    Click to expand...


    That is correct. Some elections are revocable, some aren’t and this one falls in the latter camp. Reason being, the deduction does not allow for depreciation and that is permanent. And that’s one reason home office deductions for physicians are typically much higher using the “actual expense” method.

    Leave a comment:


  • ENT Doc
    replied
    You can still change it year to year, right? I thought any given year's election, once made, is irrevocable. I would definitely use the method that allowed for the most disallowed losses to be carried forward (regular). The 8829 will hash this out.

    Leave a comment:


  • jfoxcpacfp
    replied
    Rarely recommend the simplified method for attendings and your calculation could very well be correct on a $1.2M home. There is no reason for you to pass up a deduction you are entitled to. Any amount of HO deduction that is disallowed for this year will carry forward to future years. The Simplified Method, once elected, cannot be changed.

    The one caveat that I would give is to not self-prepare your return this year (or any year you have a small business) as that will raise the audit risk, given the specifics of your situation.

    Leave a comment:


  • EJ at Dads Dollars and Debts
    replied
    When I changed it to simple reduction for home office it goes to $0. Net deductions already greater than net income....so I am going to stick with that.

    No interest in getting audited, particularly since this year I also have casualty deductions to consider from the Wild Fire I lost my home too....

    Leave a comment:


  • cgossage
    replied
    If it’s for your blog make sure the deduction is flowing through your Schedule C and not Misc Itemized Deduction on your Schedule A. A Home Office expense isn’t allowed to exceed income from your home business.

    Leave a comment:


  • adventure
    replied
    I did the simple method for my job this year - quite a bit less than 34k.

    Leave a comment:


  • EJ at Dads Dollars and Debts
    replied
    Good advice all around here. Not simple deduction...I did the regular method. It was a room all onto its self. Not used for anything else. We had to do some roof repairs, so that also gets thrown in there per turbo tax. Putting it as $3k a month seems a bit crazy...so will likely need to look into this.

    No my blog did not make $36k...closer to $3k but as someone said, can deduct losses also.

    Thanks for the advice!

    Leave a comment:


  • lost
    replied
    1) Simple method- $5 per square foot, Maximum 300 square feet.

    2) Regular method- Percentage of home used for business.

    https://www.irs.gov/businesses/small-businesses-self-employed/simplified-option-for-home-office-deduction

    $34 K deduction......I feel it will be hard to swallow for IRS.

    Leave a comment:


  • cgossage
    replied
    You can’t deduct more in home office expenses than your income derived from the business. I’m assuming Turbo Tax knows that and is handling it correctly but worth double checking.

    Leave a comment:


  • ENT Doc
    replied
    Was the gross income more than the expenses and home office deduction amount?

    Leave a comment:

Working...
X