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Level 3
February 13, 2021
Question

Simplified Option for Home Office Deduction

Can a tax payer that has K1 income from an S Corporation deduct the business use of their home using the Simplified Option for Home Office Deduction?

Linda Hill

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3 replies

qbteachmt
Level 15
February 13, 2021

A Corporation doesn't own a Home, has no Residence.

If your client is a Shareholder-Employee, they should consider an Accountable Plan for reimbursement of these costs.

Don't yell at us; we're volunteers
Level 3
February 13, 2021

Can and Accountable Plan use the Simplified Home office method to figure the cost of a home office?

 

qbteachmt
Level 15
February 13, 2021

An Accountable Plan is when employees submit to the Employer for reimbursement of Business Expenses as provided in the IRS regulations. Then, the Corporation (employer) has an Actual Expense.

It might be something you should read up on, and counsel your clients, for 2021. I googled this for you:

irs accountable plan home office

Such as:

https://www.journalofaccountancy.com/issues/2020/feb/employee-expenses-accountable-plan.html

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-an-accountable-plan-to-deduct-home-office-expenses/

https://proconnect.intuit.com/articles/home-office-deductions-expenses/

 

 

Don't yell at us; we're volunteers