Tel-working

[Bees Knees]

Well, I would allow it if all employees do the same thing and the employer has it in writing in the employment agreement that the employee must work from home a couple days each week. I can see an employer liking this arrangement, but I think it would be tough on the employer requiring ALL employees to do this, because many employees are not capable of working from home. Thus, I think in most cases, tele-work arrangements are more of a convenience for the employee rather than a convenience for the employer. For those employees who can, the employer allows, but does not require. Thus, no office in home.

[Uncle]

Some of my employees work from home

Well, I would allow it if all employees do the same thing and the employer has it in writing in the employment agreement that the employee must work from home a couple days each week. I can see an employer liking this arrangement, but I think it would be tough on the employer requiring ALL employees to do this, because many employees are not capable of working from home. Thus, I think in most cases, tele-work arrangements are more of a convenience for the employee rather than a convenience for the employer. For those employees who can, the employer allows, but does not require. Thus, no office in home.

This is very interesting. I have employees who live and work on different islands and even on the Mainland. A one-way commute to my office would take between 4-10 hours depending upon the employee. So because some of my local employees come to my office every day my remote employees cannot, ever, under any circumstances, ever claim home office expenses?

[Burke]

I have an employee of a large company who used to work from their local office. Now works from home 5-6 days a week, and none from the company location. We take the OIH.

[FEDUKE404]

Not whether but how

I don't disagree with the overall concept of taking OIH for tele-commuters in today's world, which is definitely a'changin' .

My confusion lies with what exactly you could (with a clear conscience as a tax preparer) show as an allowable office-in-home expense? First, you have to clear the employer "requirement" to have such expenses. . .not undoable but still difficult. Then you have to work within the very restrictive "regular and exclusive use" concept attached to any office in home space. Maybe a single person in a multi-room apartment can denote the unused bedroom as "my office," but a similar declaration might be somewhat difficult for a "family member" with a small home with many multi-purpose rooms. Then how do you play the expense game? What part of internet IS business? What computer costs can be properly used for "employee" use of, and justification for, said computer? Last time I checked, such computers at home would likely be listed property and that opens a can of (notably separate from exact OIH rules) worms for record-keeping of "business" use. And then after all of this is put through the blender, is there enough left over to clear the 2% hurdle for miscellaneous itemized deductions for an employee (I assume these folks are not making minimum wage)? We can save discussion of the long-term effects of depreciation for another day.

For someone who might work "from home" on Tuesday and Thursday, is it likely their "office space" would just be unused, and collecting just, for the other 5+ days of the week when they are "away from the office"?? Probably not. . .

( And then you have to present them the invoice for preparing their taxes with this zinger attached. )

FE

[Bees Knees]

This is very interesting. I have employees who live and work on different islands and even on the Mainland. A one-way commute to my office would take between 4-10 hours depending upon the employee. So because some of my local employees come to my office every day my remote employees cannot, ever, under any circumstances, ever claim home office expenses?

The difference is you have two categories of employees. Local employees who have the same tax home as their place of residence, and out of town employees who live outside of the tax home (employers location). I did not imply that every employee working for the company has to be treated the same. I am talking about the same class of employee, and your situation clearly has two different classes of employees.

The point is, you can't have a situation where multiple employees of the same class can just willy nilly decide for themselves whether they choose to work at home or work in the office. It has to be for the convenience of the employer, not the employee.