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  • Accounting: Home Office

     Linda Leatherbury,Full-Time Faculty, Kaplan University 
    Published October 2014

      “Americans claim more than $7 billion in home-office-expense deductions. In addition 11.6 million taxpayers deducted $63.2 billion in miscellaneous itemized deductions subject to the 2% floor.”*

    Computers, tablets, smartphones and technology have significantly impacted how employees work. It impacts how meetings are conducted and business is transacted. The ability for the individual to connect online, on demand, and in the privacy of the home has also impacted the workplace. This has influenced not only production output level, efficiency, and timeliness in the workplace but also where this work takes place. 

    Information from the United States Department of Commerce Economics and Statistics Administration reveals that “the percentage of all workers who worked at least 1 day at home increased from 7.0 percent in 1997 to 9.5 percent in 2010. During this same time period, the population working exclusively from home in SIPP( The Survey of Income and Program Participation (SIPP) is a nationally representative longitudinal survey of about 50,000 households. Increased from 4.8 percent of all workers to 6.6 percent.”

    Individuals in various occupations have the opportunity to work via remote access. For many, this remote location is their home. Even those who do not telecommute on a full-time basis may now spend some part of their official work week from their home. Though telecommuting may be growing in popularity, not all employers have embraced the idea. In 2013, Yahoo placed a ban on employees working from home.

    While Yahoo put this ban in place, it was not applied to all employees. For those individual at Yahoo and other companies that allow its employees to spend some time of the work week from home, there are various tax deductions which may be applicable. 

    Visit the FAQ section to explore additional information regarding individual tax deductions associated with an individual’s home office. 



    Linda Leatherbury is a full-time faculty member at Kaplan University. The views expressed in this article are solely those of the author and do not represent the view of Kaplan University.

    This article serves and general information and should not be relied upon as official tax advice. For tax application to your individual situation you want to be sure to consult your personal professional accountant and tax advisor.


    * IRS, on the Internet at www.irs.gov

    †U.S. Census Bureau. Retrieved from www.census.gov/prod/.../p70-132.pdf

    ‡Kleinman, A. (2013, April 19). Marissa Mayer finally addresses work from home ban. Retrieved from http://www.huffingtonpost.com/2013/04/19/marissa-mayer-work-from-home_n_3117352.html

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