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0 pointssneak12y ago0 comments

The benefit of this, in addition to the obvious (you don't have to put on pants to "go to work") is that any space in your home used solely for business purposes is tax deductible under the US tax scheme.

My company pays 100% of my personal apartment rent, and I receive an additional W2 for the percentage of non-office space as personally taxable income. This means that 100% of the money paid is a corporate tax deduction, and the parts paid for my office never hit my personal income.

I recently learned that because my flat is a 2 bathroom, one of those bathrooms can be included in the "office space" calculation as well, as offices require bathrooms.

Standard disclaimer: I am not an accountant or a lawyer, so this is layperson advice. Consult with a professional.

As mentioned above, make sure it has a door, and close it. Train your housemates/family/partner/SO/whatever to leave you alone while you're "at work".

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bjt12y ago

Home office deductions are heavily scrutinized by the IRS, precisely because it's so tempting for people to fudge the lines. You need to have really good documentation. As of this tax year, there's now a "simplified option" that requires less calculation on your part. See http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ....

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