Home Office Deduction 2018

The Tax Cuts and Jobs Act (TCJA) disallows all miscellaneous itemized deductions subject to the 2% floor for the tax periods 2018-through 2025.  What does this mean for the Home Office Deduction during the aforementioned tax periods?  

Company Employees who work from home will no longer be eligible to deduct any home office expenses as in past years. In prior years, all the expenses that went into making the home office space comfortable from the paint to the furniture were deductible as home office expenses.  Now you will be working from home for the pure convenience of it, no more perks for the next 7 years (including the current year)!

Good News for those Self Employed- You can still deduct eligible home office expenses against your self-employment income.  

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Here is how you qualify:
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• ​Part of your home that is attributable to business must be "exclusively and regularly for your trade  or business;
• That part of your home must be your principal place of business;
• And a place where you meet clients, patients, and customers
• Only one home office per attributable home office space

Notably, if you use a part of your home as a workspace, it must be space that is used solely for business.

How to determine the amount of space attributable to your business as a home office deduction?  If your home is 3,000 square feet and your home office is 300 square feet you would claim 10% of your home related expenses as a home office deduction.