Temporary home office tax deduction?

Question

I had to work from home for two months because our new office wasn't ready yet. Can I claim any tax deductions?

so the 2 months of mortgage interest and real estate taxes is deductible even though I have already claimed the full year mortgage interest and real estate tax deduction? it seems like i'd be deducting 2 months of mortgage interest and real estate taxes twice on my return. thanks

Answer 1

To claim a deduction for a home office you must meet a number of tests. Among other things it must be for the convenience of your employer and the area must be used exclusively for business purposes.

Costs that were or could be deducted another way (such as mortgage interest and property taxes) CANNOT be used in the calculation of the home office deduction.

Here's a link to IRS Pub 587 that explains the whole thing: http://www.irs.gov/pub/irs-pdf/p587.pdf

Keep in mind that home office deductions are high on the IRS audit "radar screen". Don't let that scare you off if you're entitled to the deduction and can prove that you meet the requirements and the amounts that you claim.

Tip: Two months worth of home office deductions are probably not worth calculating unless you are already itemizing deductions. If you're using the standard deduction and don't have enough itemized deductions after adding in the HO deduction it won't be worth it. Keep in mind that Employee Business Expenses are subject to the 2% rule and that alone may quash the deduction depending upon your Adjusted Gross Income.

And 2 months worth of home office use may not meet the "principal place of business" rule but if your employer had no other place for you to conduct your work it MIGHT be worth looking into it.

Answer 2

Nothing, since it has run over a year. You only get to deduct temporary living expenses. Temporary is defined as projected to last less than one year, and when over actually was less than one year. Yours are not temporary so no deductions are allowed. If you took any deductions in a prior year you must amend that return and remove the deductions since it was not a temporary gig.

Answer 3

No, you can't double-dip and claim the interest and property taxes both as an itemized deduction and a home office deduction.

Answer 4

Only the expenses (a small portion of your utilities - computer and other office expenses).

Don't be fooled into ever deducting a portion of your home as an office (depreciation) because IF YOU EVER SELL YOUR HOME, YOU HAVE AN INCOME TAX NIGHTMARE. YOU HAVE TO GO BACK AND RECAPTURE THE PORTION OF YOUR HOME USED AS A HOME OFFICE IF YOU DEPRECIATED ANY PART OF YOUR HOME.
YOU CANNOT GET THE RESIDENTIAL HOME ROLLOVER IF YOU EVER SELL YOUR HOME - WITHOUT THIS BEING A PROBLEM.
Many homeowners take the depreciation for home office AND GET - IRS AUDITED WHEN THEY SELL THEIR HOME BECAUSE THEY FORGOT THE YEARS THEY DEPRECIATED THEIR HOME OFFICE.
This would be business property and not residential - and again when you're audited - you have no excuse and you can't go back and undo what you did.

www.IRS.GOV
Forms, Schedules, Instructions - and search sections for all information needed.

GOD bless us always.
CPA-retired

Answer 5

I had a home office. Tax laws change but when I had one, it had to be a room that was designated for that purpose and that purpose only. It could not be a room that was a spare bedroom and had a desk. Even a convertible sofa was not allowed. Check with an accountant as to the current definition of being designated a home office. Two months might not be worth the itemization. Your accountant can tell you. My husband worked out of the house a few years ago as he was squatting prior to that as they had no office for him and it was tough to keep trying to find him space. For the few months, he did not itemize the home situation. But your situation might be different.

Answer 6

It would depend on how much your employer reimbursed or assisted in setting up the home office. If there were unreimbursed expenses you can claim them on your tax return as unreimbursed employee expenses. The first two and a half percent of your AGI is not deductible. Good luck.

Answer 7

http://www.realestatedonation.org/ allows you to take a deduction equal to the appraised value of the property.

Answer 8

Yes, utilities, prop tax, mtg interest, insurance, r&m of the office space, based on the sqfootage of the office space.