Celia Moore, 1031 Exchanges Done Right Since 1991. (Equity Advantage, Incorporated)

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Rainmaker
620,692
Ernie Steele
Lebanon, PA

Having been audited twice in my commission only lifetime, for better or worse, I don't even consider anything marginal. I only use what I have in black and white, no grey areas of any kind. 

Jan 27, 2021 11:26 AM
Rainmaker
1,498,878
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Best to check with your accountant.  They'll be better able to advise on tax laws than a realtor could.

Jan 27, 2021 11:41 AM
Rainmaker
1,186,057
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

sure, take as many deductions as you feel comfortable with.  Rral Estate agents are the most highly audited bunch out there.  Just be smart.

 

Jan 27, 2021 11:14 AM
Rainmaker
503,795
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

As with all things tax related the answer is maybe. Everyone's tax situation is different.

Jan 27, 2021 10:54 AM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Celia,

Our accountant is up on the latest and greatest, that is why we use a pro, and we have a peace of mind to go out and earn our living. A

Jan 27, 2021 10:51 AM
Rainmaker
935,757
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Hi Celia, we have used the simplified home office deduction for years and I don't have to keep records of utility and insurance bills, property taxes,  and figure depreciation, etc.  There is no recapture tax on depreciation when selling the home with the simplified deduction. 

As a self-employed real estate professional all I need is a tape measurer to measure my dedicated office space in our home  to calculate square footage and multiply by $5.   The maximum space allowed is 300 sq. ft.  Is this a great country or what?????

 

Jan 27, 2021 10:25 AM
Ambassador
6,360,053
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Have you set up an actual office in your home?  There are many govt and other publications out there that detail what is required.

Jan 28, 2021 02:06 AM
Ambassador
3,339,984
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I'll pass on that deduction ... thank you.  I have worked from home for 18 years and never took a home office deduction.  I follow the guidance of my CPA ... who I trust. 

Jan 27, 2021 04:40 PM
Rainer
195,422
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

Very few people on this forum (if any) are qualified to give tax advice.  Perhaps you would get better answers on a CPA forum or talking to your personal tax advisor.

Jan 28, 2021 05:25 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Sure, if that office is used 100% for business. The IRS defination of 100% does not align with common sense, so it may be best to use the standard.
My suggestion is to stay below the thresholds. Be aware the IRS has only one tool, so don't be the nail that gets hammered. YOU CAN NOT WIN, even if you win.

Jan 28, 2021 06:16 AM
Rainmaker
849,841
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Definitely consult with a tax pro but I will add that I attended a class on tax deductions yesterday and there is a LOT of misinformation out there re: the home office.  I'm not a tax pro but my understanding is that you can definitely claim it -- but as with anything, there are stipulations.  Good luck! 

Jan 28, 2021 05:05 AM
Ambassador
3,100,124
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

A seasoned, local tax accountant can advise!

Jan 27, 2021 04:56 PM
Rainmaker
2,817,665
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Would always recommend talking to your CPA about this. There are definite downsides to this, esp if you own your home. I believe it conflicts w/ other deduction. check w/ your CPA.  I am not deducting and have worked from home for years.  My CPA advised against this. Always talk to the pros.

Jan 28, 2021 10:25 AM
Rainer
321,564
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

Last tax year I did take the home office deductiion.  Suppose I will again this year.  I don't try to pad my expenses at all, keeping it simple. 

Jan 27, 2021 06:57 PM
Ambassador
2,679,799
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Talk to a CPA.   You may find out that the risk is not worth the small amount of money saved.   (See the many answers on this page from people who have been targeted by the IRS).

Jan 27, 2021 06:41 PM
Ambassador
3,582,534
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

We consult of CPA before we take any deductions.  She up on the latest rules and info.

Jan 27, 2021 01:51 PM
Rainmaker
665,139
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Celia ~ You should really speak with your tax advisor on this, but the IRS does have a "safe harbor" deduction for this.  That deduction has limitations on the amount, but it has a $1,500 max deduction calculated at $5 per sq ft (300 sq ft max).  On the upside, there is no recapture with taking this deduction.

 

https://www.irs.gov/businesses/small-businesses-self-employed/simplified-option-for-home-office-deduction

Jan 27, 2021 01:31 PM
Rainmaker
1,840,506
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Sure, just get yourself an audit. 

Jan 27, 2021 12:35 PM
Ambassador
5,034,210
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Talk with your CPA about your personal tax situation.

Jan 27, 2021 12:06 PM
Rainer
509,449
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I would suggest that you consult with your CPA

Jan 27, 2021 11:48 AM
Rainmaker
2,171,672
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I know it changed in the last 2-3 years ?

Jan 27, 2021 10:14 AM
Rainmaker
1,296,661
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Yes, you have always been able to claim a home office.

For details, talk to a tax expert...which none of us are.

Jan 28, 2021 12:53 PM
Rainmaker
898,068
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Yes, but check with your accountant as to how much you can claim. Usually, percentage of home that you actually use, e.g. specific room, not the whole house. That goes for internet use, electricity and so on.

Jan 28, 2021 06:31 AM