Working at home has come a long way from the days when employers were most concerned that they would not get their money’s worth if they allowed employees to do so. Instant communication, improved internet access, and more stable virtual network connections have changed the equation for employers, who now see the ability to work at home as benefiting both sides: employers and employees.
As more people telecommute from home and people who lost jobs in the recession start businesses in their homes, it is a good time to revisit the tax rules that apply when people work from their homes.
The IRS recently announced a safe-harbor method that will make it easier for taxpayers who choose the safe harbor to take the deduction, so practitioners may see an increase in clients who want to take the deduction. However, the basic qualification rules have not changed, so an understanding of them is still important.
Here’s a link to an article from the Journal of Accountancy where you can read more about the new method for home office deductions.