The Essentials

Home Offices & Tax Deductions: Save Your Receipts

Before the pandemic, we more or less knew what was a tax deductible expense when it came to business travel.

But for many of us, our lifestyle and workstyle has changed dramatically since COVID-19. With very few of us traveling for business these days, what constitutes as a legitimate, deductible business travel expense?

 

With fewer of us going to our offices these days, one possible tax deductible item in particular is now in focus — the home office — and the tax break that lets you deduct the space in your home that’s dedicated to working.

 

However, in 2017, the IRS suspended the home office deduction for corporate employees — anyone who receives a W-2 from an employer.

 

For the moment, keep all your receipts and records of business transacted at home, because you can expect that IRS rule to be tested in court this year.