Question - Employee Business Expense for Home Office

[dfchelbay]

DH works out of a home office for a company. I did all the usual home office deductions on the tax return. According to the IRS:

You can only deduct the amount of space you use in your house or apartment for your business. That means, if your office is one of ten rooms in your home, and the rooms are approximately the same size, then you can deduct one tenth of your rent, mortgage, property taxes, utilities, renter's or homeowners insurance, maintenance costs, and so on.

My question is this: If I've already itemized on my Schedule A the property taxes and mortgage interest, I don't do it on the Form 2106 - Employee Business Expenses. I don't think I would for the property taxes and mortgage interest...is that correct? I've already itemized them on my Schedule A. I would however list a portion of my homeowners insurance on Form 2106-Employee Business Expense...is that correct. What about a portion of the mortgage, do I write off a percentage of the principal on the mortgage?

I want to make sure we get all deductions coming to us for him working at the house now. Thanks all.

 

[Tink522]

You'll also need the total square footage of your house and home office on Form 8829 and enter the total amount for the expenses (mortgage interest, real estate taxes, homeowner's insurance, utilities, etc). This should give you the percentage of Schedule A expenses vs 8829 expenses. Also, don't forget to add in depreciation of your home to the 8829.

 

[dfchelbay]

You'll also need the total square footage of your house and home office on Form 8829 and enter the total amount for the expenses (mortgage interest, real estate taxes, homeowner's insurance, utilities, etc). This should give you the percentage of Schedule A expenses vs 8829 expenses. Also, don't forget to add in depreciation of your home to the 8829.

Please correct me if I misunderstand something, but since my husband is an employee of a company, he cannot use Form 8829. Let me know if I'm wrong on this one...thanks.

 

[dfchelbay]

Anyone?????

 

[kydisneyfans]

Turbotax may be your best friend. I just plug all of my home numbers in there and let the program generate the forms already filled out.

If you go long form and deduct the property taxes, mortgage interest, etc already, then you cannot deduct it again for home office. You can still deduct utilities and other expenses.

In addition, you also can claim space in rooms where a person would pass through to get to the home office. My office is in the formal dining room and you have to walk through the living room to enter, I claim both rooms, about 15% of the total square footage of the house.

 

[pam95]

Keep in mind also that the home office has to be used exclusively for business. That means if you do anything personal in that room as well, you can't take a deduction.

 

[tinkarooni]

Just a little info from my accountant. I have worked at home for 15 years now. He has always warned against claiming it on our taxes, he sttaes that deductions for home offices is a fast track to being audited. FWIW.

 

[Kriii]

Just a little info from my accountant. I have worked at home for 15 years now. He has always warned against claiming it on our taxes, he sttaes that deductions for home offices is a fast track to being audited. FWIW.

DH is an accountant and has said the same thing...