How To Claim A Tax Deduction For Home Business Expenses

[@jimd1617]

thank you!!

[@Shawn.Tanaka]

Hi Sharon, How would the home office deduction work for someone who primarily works from a home office as a W2, but also picks up shifts throughout the year as a 1099? Both jobs are exclusively performed remotely at home. Would I be able to use the same space?

[@sharonwinsmith]

Great question! That's a common fact pattern these days and my position has been that the home office deduction would not be available in that situation. The rules require that you use the space exclusively for purposes of the business activities that give rise to the deduction. So the fact that you are doing W-2 work in there as well would prevent the ability to claim the deduction for the 1099 income. Always worth checking with your CPA in case they have a different view.

[@Shawn.Tanaka]

@@sharonwinsmith I appreciate the reply, thank you !

[@Unbeatable246]

I like your videos but you are consistently shaming CPAs as ignorant of many basic tax matters and promote the attorneys. Not sure why but CPAs know most about tax. There many out there who are not experienced in tax but it does not mean that with every topic you assume a CPA would not know about

[@sharonwinsmith]

Thanks for watching. You would typically go to a tax attorney for tax planning/consulting and a CPA for tax return prep or bookkeeping. You might have some crossover in some cases but would not want to rely on the person who does your tax return to tell you about tax planning strategies. Very different skillset and background.

[@Unbeatable246]

I respectfully disagree. Many CPAs are specialized only in tax planning and strategies. Putting CPAs only on the bookkeeping/preparation size is undervaluing their expertise. They are trained and educated for much more and many of them leave the bookkeeping to bookkeepers and unlicensed accountants and focus on strategy. There are legal aspects of the business a CPA refers to attorneys but apart from that it is within the CPA expertise to handle tax planning if this is what are specialized on @@sharonwinsmith

[@sharonwinsmith]

There are definitely some great CPAs out there, and I have had the great pleasure of working with many of them during my career.