Had several clients who tel-work two or three days a week ask if they could take office in the home deduction? Could find very little information on subject. Would like to hear other opinions.
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See TheTaxBook 1040 edition, page 5-15 under the heading "Employee Business Use of Home." The example given for Amy the teacher should answer your question. -
tel-working
What if the employee's desk is used by another employee on the days they tel-work? The desk is not available those days.Comment
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huh, two employees in same household using office in home?Comment
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tele work
No two employee's using the same desk at work.Each there are different days.Comment
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how can you take office in home when calls are made in employer's place of business?Comment
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For employees I always think of the "for the convenience of the employer" as being the big hurdle to get past. Regular and exclusive use too, but on that one taxpayers can more easily lie.Comment
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What does the taxpayer have from the employer saying it's for the employer's convenience? Letter on letterhead. Job offer requiring telecommuting X days/week as a requirement of the job? Employer pays for the telephone/internet/etc. directly? Anything at all that implies the employer needs this arrangement? Tell the client to put something in writing from his employer in his file, but of course what you really want is a copy for your file to CYA.Comment
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Color me confused
I am thoroughly confused here.
Is this person an "employee" (W2) or self-employed (Form 1099-MISC)?
If two employees "use the same desk at work" how can you possibly justify office-in-home ?
If W2, "convenience of employer" sounds like a stretch. What exactly would you deduct - part of telephone bill etc? Computer is listed property. . . Office-in-home has income restrictions. And ALL of the above might disappear with the 2% AGI miscellaneous deductions haircut.
If Form 1099-MISC, a very very weak maybe. Same OIH restrictions apply.
What exactly constitutes this "office"?? Corner of kitchen table, laptop on sofa in den, or comparable?
And, as I said upfront, "regular and exclusive use" of the alleged office is gonna be problematic to prove.
I'm surprised this client (and friends) are not lobbying you for travel costs between all of these "work locations."
FEComment
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tele work
My client is in the office Tuesday and Thursday.Other person in Monday,Wednesday, Friday. Employer pays no additional money. High speed internet is requirement. Must log in and work scheduled hours from home. I di not allow deduction but want other opinions. More companies in the Washington DC area are doing this now.Comment
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Work sites
Many people routinely have "high-speed internet" these days. ( Comes in quite handy for Netflix. )
Your employee has two burdens which must be met:
1 - Requirement that employee MUST work from home. (And, would sitting in a booth at Starbucks also work?
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2 - Proof of any EXTRA costs incurred (internet/OIH/whatever) by client while working away from the Tues/Thurs work site.
If these Tues/Thurs expenses are indeed "necessary," then why doesn't the employer reimburse them?
Barring some significant (written) proof, based on facts at hand I also see no allowable deduction for Form 2106 expenses.
OK, there may be some small crumbs lying around if you wish to pursue electricity used, piece of internet costs, dealing with listed property (check rules for any employee having computer! - something like "must be required by employer" IIRC), regular/exclusive OIH stuff, etc.
Others will certainly disagree. . .
FEComment
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I agree with FEDUKE404.
I think the biggest problem is this: The employee wants to save some commuting and the employer wants to use office space available more efficiently by cramming more than one employee in the same office on different days.
The big question is what if the employee didn't want to work at home? Would the employer accommodate that employee by allowing him/her to use the office at work every day of the week?
It does not meet the convenience of employer test unless the employer requires it as a condition of employment, and if the employer will accommodate the employee for not having an office in the home, then it is not a condition of employment and no office in home deductions are allowed.Last edited by Bees Knees; 04-19-2015, 07:34 AM.Comment
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tele work
I have not allowed any clients to claim home office deduction for tele-work but wanted other opinions.Thank you all for contributing.Comment
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