Can you get a tax deduction for your home office?
For both groups, though, taxes aren’t as straightforward as they are for in-office employees.
If you’re self-employed, it’s much more of a headache to figure out and file your taxes.
If you work with your laptop on the dining room table, that won’t cut it.
(Protip: Take photos of your workspace or office in case of an audit.)
The exclusivity rule is the one that invalidates many home offices.
The area can’t be used for any personal purposes whatsoever.
No occasional guests in your office/guestroom, no movie nights in your office/den.
Basically, this means your employerrequiresyou to work from home, not that you just want to.
The IRS sees that as an arrangement for your convenience.
IRS publication 587has the official details.
Like the home office deduction, business-related expenses can be tricky.
There are other important catches, though.
Also, employee expenses are included as part of miscellaneous deductions, which have a limit.
Double taxation, in other words.
New Jersey doesn’t have a formal rule but generally has applied this practice as well.
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