Taxpayer works in employer's office three days a week and two days a week from her home office. She has stated that the two days a week working from her home is for the convenience of her employer. Would other tax preparers allow the deduction if taxpayer signs a statement that the two days from home is for the convenience of the employer and employer does not provide an office during those two days? My instinct is telling me that it is more for the convenience of the taxpayer being she does have an office at employer's (county job) facility three days a week, but I am not positive.
-
-
A letter from the employer to her would be more convincing. -
How can it possibly meet the Principal Place of Business test?Comment
-
If, in fact, it is for the convenience of the employer, the test you cite would be met.Originally posted by Gary2 View Post
ยง280A(c)
The poster states there is not fixed location for two days per week....the term “principal place of business” includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.Comment
-
If the taxpayer qualifies for an office in home deduction, by the time you claim a prorated
deduction and reduce it by 2% of AGI there will be little or no tax benefit remaining. I
refuse to allow an office in home deduction for any employee since it is not worth the
effort.Comment
-
That's not the way I read Pub 587, in particular the chart on still asks whether it's the principal place of business even after answering yes to the convenience of employer question.Originally posted by solomon View Post
I'm sorry, but that doesn't pass the snicker test for me. It says "no other fixed location", not "no other fixed location on those days or hours". I'd go for a change for a period of time (e.g. a teacher working 12 months for a school system, but forced to work at home during the summer because the buildings are closed), but not when there's another location that is used regularly during the same general time frame. That is, unless there's a court decision justifying it.The poster states there is not fixed location for two days per week.Comment
-
As an employee not only does the office have to meet the principal office test (no other employer office locally available) and the the test for the convenience of the employer. In this time of due diligence for the EITC, it is better to have a note more than the employee saying "It is for the employer's convenience." You should have some description about how it is for the employer's convenience. Is there a family issue or employee health issue that needs to be met.
Most employee home office deductions tend to be small and might not be that big of a tax benefit. Better for a renter than a homeowner.
Is this another Dr. Solomon situation?Comment
-
The publication diagram is easier to parse, but reading the code gives the same answer:Originally posted by solomon View Post
1. 280A(a) - you can't deduct the business use of the home unless it meets one of the exceptions here.
2. 280A(c)(1)(A) - One of those exceptions is if it is used regularly as the principal place of business.
3. 280A(c)(1)[second sentence] - The exception cited above can't be used by employees unless it's also for the convenience of the employer - but if it is for the convenience of the employer, you still need to satisfy one of those tests.Comment
Comment