Home Office Tax Deduction + Spreadsheet

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Timestamps:
00:00 Introduction
00:23 IRS Rules on Home Office
05:01 Business Use of Home Worksheet (Pub. 587)
05:14 Spreadsheet Calculation for Renters
13:47 Spreadsheet Calculation for Homeowners
20:04 Issues with using depreciation
21:22 Contacting Hector for help
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[@DavidLacaille-xg3vu]

Hi Hector, Great video and thanks for the explanations. To segway to your QuickBooks videos, I was wondering if you have any video that show the recording of a bill split between the owner and the company for office deductions?

[@HectorGarciaCPA]

Not yet!

[@gulyavaleyeva6156]

I am confused on how to calculate the depreciation when switching from simplified to actual and back? Thanks

[@HectorGarciaCPA]

Simplified would not have depreciation.

[@kayjane]

Quick question - should rent and utilities be paid through a personal account or business account. Wondering how to transfer the reimbursment from the corporate to the personal account?

[@HectorGarciaCPA]

That’s a question for your accountant

[@marketbuy]

Nice video, Hector! Applying the same logic for SCorp, how would I record the Accountable Plan in 1120S? HOW and WHERE to include this deduction in 1120S? What would the call out be. Accountable Plan? Home Office deduction? As you can see, doing Schedule C in TurboTax is quite easy because it guides you through everything. Doing 1120S, it’s not quite clear. Thank you

[@HectorGarciaCPA]

Via a journal entry

[@garycurtis]

Excellent Video Hector I really appreciate it. I have a question, so if I Indirect Exspence my home office, is that how I enter it into QB and not separate each Indirect exspence?

[@HectorGarciaCPA]

You would enter a journal entry

[@MrMarkwill62]

Very good video, thanks. I see your advertising quickbooks, Can you show how would it be done in quickbooks?

[@HectorGarciaCPA]

It’s just a Journal Entry Debit Home Office Expense Credit Shareholder Contributions (Equity)

[@MrMarkwill62]

@@HectorGarciaCPA tks

[@minyoungjean2209]

Hey, Thanks for the video. It is so helpful. I have a quick question. If I choose standard deduction this year, could I still deduct home office expense such as property tax, home mortgage interest...?

[@HectorGarciaCPA]

Yes a portion of it.

[@davidelliott7824]

Thanks for this valuable info. One question: Can HOA fees be included in the homeowners indirect category?

[@HectorGarciaCPA]

Yes

[@mohammadalamgir6096]

Do I deduct my rental office for square feet deductible

[@HectorGarciaCPA]

Rental office, probably the whole thing of is business related

[@thetruth3514]

My house is 2100sq ft. My detached shop where I operate my business is 2400 sq ft. What percentage can I write off?

[@HectorGarciaCPA]

2400 / 4500 ?

[@thetruth3514]

@@HectorGarciaCPA 2400sq ft

[@onemoelove4376]

Great information that I can actually use... thank you.

[@LashTherapy]

Hi do you still offer your cpa services?

[@HectorGarciaCPA]

We do… but at capacity now.

[@michaelhuebner6843]

Gig workers can qualify for this deduction as well as long as they do administrative work at home which we can do. Many times we need to contact driver support to get pay issues straightened out and some of us need a work space that run multiple apps so when can plan what apps and at what times will will be using them. Considering that most gig workers don't even track their miles at all I'm expecting I'm going to be in the minority of gig workers that claim this deduction.

[@HectorGarciaCPA]

Correct

[@KeriCoxKan]

Your videos are always awesome! I appreciate the level of detail you provide.

[@shantryce375]

Thank you!!!!!!

[@junepark1005]

can you write off home office deduction when you are living with your parents and renting the 2nd floor of the house?

[@AR-xu2gg]

Thanks Hector, really good info and appreciate the spreadsheet. Should all home maintenance be added to the indirect cost, we just need to add that row ourselves to the spreadsheet?

[@nancymantilla4701]

Hi Hector. Any rental property video? Convert principal residence in rental property or vice-versa & sell rental property.

[@HectorGarciaCPA]

No