Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Valued Pioneer
Posts: 3
Registered: ‎03-31-2016

Home Office Safe Harbor Deduction

I used my home as an office until July 31, 2017 and therefore want to claim the Safe Harbor for 7 months. Can I use the Safe Harbor for the 7 months? If I can, how do I enter it in the H & R program? Thanks

 

Associate (Pioneer)
Posts: 11
Registered: ‎03-13-2018

Re: Home Office Safe Harbor Deduction

Hello Ianzzir,

Yes, you can use the simplified method for the seven months that you used the home office. What you basically have to do, is average out the total number of square feet that you used throughout the year.

Here is an example:

Your home office total square footage: 120

120 multiplied by 7 months used divided by 12 months of the year = 70

That means you would enter 70 as your square footage of your home office in the program. The concept behind it is that you used, on average, 70 square feet of your home as a home office throughout the year.

 

Here is a link to the IRS publication 587. There is a worksheet on page 28, where it walks you through how to calculate the area of square footage to use for the simplified method to take the home office deduction (Part II of the worksheet).

https://www.irs.gov/pub/irs-pdf/p587.pdf

 

If you are using the online program, input the home office in one of these areas:

Home Office as Self-Employment Expense:

If you have self-employment activity, report your home office here:

  1. Click Federalon the top navigation.
  2. Choose Incomeand then choose Business and Partnerships.
  3. Click Visit Topicnext to Self-employment or business income (Schedule C).
  4. Click Add Businessand continue with the topic. We'll ask you about your home office here.

 

Home Office as Job-Related Expense:

If you use your home office for your job, report your home office here:

  1. Click Federalon the top navigation.
  2. Choose Adjustments and Deductionsand then choose Employment Expenses.
  3. Click Visit Topicnext to Unreimbursed employee expenses, including job-search expenses (Form 2106).
  4. Continue through the topic until you reach Vehicle, Home Office, and Depreciation. Check the box for Employee home office.

 

If you are using the downloadable software, enter the home office in one of these areas:

Home Office as Self-Employment Expense:

If you have self-employment activity, report your home office here:

  1. Click Federalon the top navigation.
  2. Choose Income.
  3. Click on the green Go-To next to Your Own Business (Schedule C).
  4. Click Add or Edit Businessand continue with the topic. We'll ask you about your home office here.

 

Home Office as Job-Related Expense:

If you use your home office for your job, report your home office here:

  1. Click Federalon the top navigation.
  2. Choose Deductions.
  3. Click the green Go-To next to Job-Related Expenses.
  4. Continue with the topic. We'll ask you about your home office here.

 

I hope that answers your question Ianzzir, if you have any other questions I am happy to help,


Lee

Tax Research Specialist.

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Valued Pioneer
Posts: 3
Registered: ‎03-31-2016

Re: Home Office Safe Harbor Deduction

Your response Lee was very thorough and it really helps me. That was the only item I had pending on my return and now I am good to go thanks to you. You really rock!!!

 

Best wishes to you and regards.