Home Office - S Corporation - Spidell

Home Office – S Corporation

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Message Board Home Office – S Corporation

This topic contains 4 replies, has 3 voices, and was last updated by Dave Yoshida 3 weeks, 2 days ago.

  • Author
  • #182304

    What is the best way to capture home office expenses for an S Corporation? One that does not have any other office?

  • #182363

    I was told of an IRS rule that allows $500 per month.  I do not have a citation for that.

  • #182407
    Lynn Freer

    The deduction is not for the S corporation, it is for the employee/shareholder. Haven’t heard anything about a $500 deduction.

  • #182495

    The deduction is not allowed against schedule E income, correct? And the expenses are directly related to the running of the business. Say, a shareholder uses a large space in the home and has no other office space anywhere? Is the only option to use the employee business expense rules?


  • #182616
    Dave Yoshida

    I’d recommend establishing an accountable reimbursement plan whereby the office-using-shareholder measures the home office vs total space (Form 8829 worksheet) and then requests reimbursement for actual expenses as incurred based on the %.

    I am aware of practitioners who include an allowance for depreciation in this calculation. I do not include such an allowance when I help S-corp folks start up an accountable plan because it is a non-cash expense so nothing really to be reimbursed.