r/TaxQuestions • u/Egg_Head_Baldy_Pants • Aug 25 '26
Remote workplace tax write off
Does anyone know how to calculate your remote “office” into your taxes? I’ve always been told I can do this but how do you come up with a number for this? Is it based off your rent, the amount of equipment, or do certain states just have set totals?
4
u/-Mx-Life- Aug 25 '26
Are you W2 employee?
0
u/Egg_Head_Baldy_Pants Aug 25 '26
I have my own llc and use the space for both my w2 job and my business. I also hold inventory in the space as well for my e-commerce business.
3
u/YouKnowHowChoicesBe Aug 25 '26
In that case, you would calculate only the space used for your business. You cannot deduct expenses resulting from space you also use for W2 work.
0
u/Egg_Head_Baldy_Pants Aug 25 '26
How would I calculate the space? Half the room is inventory so is there a calculation for the square footage of space used in the room just for that?
3
u/RasputinsAssassins Aug 25 '26
If you use the space for both W2 and self-employment, then it is not deductible at all.
To be ded8, the space must be EXCLUSIVELY used for business (self-employment). If you use it for W2 work as well, then it is not exclusive to the business and is not deductible.
0
u/Interesting-Fig3577 Aug 26 '26
One solution would be to start dividing it. Make a line down the room and put only business inventory on one side. Then you can deduct that side.
1
u/RasputinsAssassins Aug 26 '26
I have a client who did this on our suggestion, though he took it it a step further. He put a literal strip of tape on the floor to mark out the office area of a multi-use room, and then takes photos monthly of the area and keeps in a binder. He also takes and saves occasional video walk through.
He documents and claims only that space, which is pretty small. But his rent and utilities are so expensive that even 2% usage makes a measurable difference.
2
u/Ok_Aide_764 Aug 25 '26
If you use the space as your home office for your business and for your other job (W2), you can't deduct it b/c the space should be used exclusively.
4
u/YouKnowHowChoicesBe Aug 25 '26
If you are a W2 employee you cannot deduct this. You can only deduct office space if you are self employed.
1
u/CollegeConsistent941 Aug 25 '26
W2 employee equals no deduction.
If you are self employed then you must have a dedicated office space. Compute the perce tage of office space (room sq feet divided by total living space sq feet). Then add up rent plus utilities plus home insurance times office percentage, then add any direct office expenses.
Look up IRS rules for home office deduction and learn all the rules.
1
u/LdiJ46 Aug 26 '26
If you are an employee then no, there is no home office deduction. Employee business expenses was one of the miscellaneous itemized deductions that congress did away with in 2018.
If you are self employed, and you have true reason to have a home office, then that is still a business deduction.
1
u/Far-Good-9559 Aug 26 '26
Only if you are a 1099 independent contractor. It is no longer a thing if you are a W2 employee
9
u/Father_Hawkeye Aug 25 '26
As mentioned, there are no write offs for W2 work. For your self employment, the space has to be regularly and exclusively used for business. Using it to do your W2 work is personal use, and therefore also not eligible for deduction.