Taxpayer is the sole shareholder in an S Corp. He qualifies for a home office deduction but I am trying to figure out the best way to take the deduction. Would he be better off taking the deduction as unreimbursed employee Form 2106 or would he be better off having the corporation reimburse him for the appropriate percentage of his expenses. Any thoughts?
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2 methods
It appears you can use either method of deducting expenses for business use of home. On pg 5-16 to TTB, top of second column give the example of S corp employee that sets up an accountable plan with S corp and adequately accounts for business portion of expenses. S Corp can reimburse employee for home office expenses and it is a deduction to the S corp.
Or on pg 19-11 bottom of second column shows the expenses being put on Sch A as 2106 expenses.
I would prefer to do the accountable plan. But I know of another office that will NOT under any circumstances take it as a deduction for the S corp.
Linda F
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