Home Office Deduction - Special Rules for Certain Professionals Who Have a Principal Place of Business Outside the Home

 

There are special rules related to the Home Office Deduction for those professionals who have a principal place of business outside the home and in addition, conduct services related to that trade or business at their in-home office.  This discussion applies to employed doctors, dentists, attorneys and other professionals who maintain offices in their homes. 

To qualify for a Home Office Deduction, the employed taxpayer must meet three core requirements.  According to the IRS:

As an employee, any use of your home in connection with your employment must be for the convenience of your employer.  In that regard, it may be advisable that the employer and employee have an employment contract requiring the employee to maintain an office in their home, though this is not required.  In some cases the employee could enter into a lease with the employer for the home office space.  The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business.


A word of caution - using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home.


You must itemize deductions on Form 1040, Schedule A to claim the home office deduction.  The home office deduction is reportable on Schedule A, line 21 and is subject to the 2 percent of adjusted gross income limitation.


If you have any questions, do not hesitate to contact the professionals at Dana S. Beane & Company, P.C.

footer


HOME | SERVICES | QUALIFICATIONS | HOW-TO PAGES | E-COMMERCE | PERSONALTAX | AUDIO NEWSLETTERS | ESTATE TAX PLANNING | FAQ - TECHNICAL | SITEMAP | CONTACTUS


All Original Content 1999-2016. Dana S. Beane & Company, P.C. All Rights Reserved.
If you have any questions with regards to the use of these documents, please read our Disclaimer.
If quoting Dana S. Beane & Company, P.C.'s editorial content in any printed or promotional materials, Dana S. Beane & Company, P.C. requires that you submit the quoted material to them, and that you sign an agreement with Dana S. Beane & Company, P.C. stating that you will use it in context, attribute the quote accurately, and identify Dana S. Beane & Company, P.C. as the source.