Is form 8829 always necessary?

[FEDUKE404]

Computer question clarified

My main question was how do you handle this issue, once the Sch C person became an employee?:

"To qualify for this deduction, the computer must be required by your company as a condition of employment."

The listed/non-listed aspect is a CPU of a different color.

I was being a bit humorous about the sign over the door, but it was/is my understanding the "regular and exclusive" rules still apply for the OIH space, with some leeway to inventory storage aspects.

Or is the IRS no longer paying much attention to these specifics of the OIH/employee rules????

FE

[erchess]

Regular and Exclusive

Yes they still apply and FEDUKE404 knows the rest of the rules too. I just didn't see anything in OP that set off alarm bells concerning those two tests.

I didn't know the computer had to be required by the employer. What if the computer is not required but is helpful and is used one hundred percent for business? I am hearing that it still can't be claimed for depreciation or any other write off on the employee's taxes but surely its presence in the room does not invalidate the home office does it?

[FEDUKE404]

Clarification on employee business computer

....What if the computer is not required but is helpful and is used one hundred percent for business? I am hearing that it still can't be claimed for depreciation or any other write off on the employee's taxes but surely its presence in the room does not invalidate the home office does it?

The way I read the IRS rules, for an employee a computer cannot be claimed in any way as a business expense absent same being a requirement of his employment, and backed up by documentation from the employer stating so. "Helpful" definitely cannot meet that threshold.

I think the IRS drew a line in the sand on this one, much the same way they did when employees were deducting a portion of their fixed telephone bill (landline days) because they were a professional, on call, police officer, and the like. This deduction was exceedingly common until the IRS said NO portion of the regular phone bill for the first telephone line into a residence could ever be deducted, even for a brain surgeon on call 24/7. They are more flexible on additional phone lines, and of course "long distance" calls. Now that everyone has a cell phone, this issue has perhaps more or less fallen by the wayside. With a fixed fee monthly cell phone plan, it can become quite a chore to track business versus personal use for that number. I'm unclear (from the school of hard knocks = audit) how the IRS is currently addressing this issue. It is far simpler to get a separate "business" cell phone as opposed to mountains of record-keeping and time to figure out the business/personal allocations for a private cell phone. But I'm sure there are some folks who will go that route, although a very good argument could be made that the "business calls" generally do not incur any extra charges that were not already there in the first place for a fixed plan.

As for this thread, the computer issue and the OIH issue are completely separate. Assuming the IRS qualifications are met, an employee can deduct a computer with or without claiming an office in home, and conversely can deduct an office in home with or without claiming any computer expenses.

Having read the recent thread about how picky the IRS can be on substantiating contributions with non-timely written records, my curiosity was whetted by wondering if they are as aggressive on the office in home issues. If so, then a complete awareness of the rules might be in order for those of us dealing with OIH and related deductions.

FE