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Work from home / Accountable Plan
Self-employed business owners may qualify for a home-office deduction when the space meets IRS business-use rules, generally including regular and exclusive use. Employees, including S-corp owner-employees, should review eligible employer reimbursements under an accountable plan instead of assuming a personal home-office deduction. Working from home alone does not qualify.
One useful actionRecord the workspace size, business use and costs. For reimbursements, document eligible business expenses, account to the employer and return any excess on time.
IRS home-office guidance ↗
IRS accountable-plan guidance ↗02
Business mileage and travel to clients or jobs
Qualifying trips between workplaces, to clients or to job sites may be deductible. Use eligible business mileage or the business share of actual vehicle costs, not both. Regular commuting is generally not deductible; avoid deducting a cost already reimbursed.
One useful actionLog the date, destination, business purpose and miles for each trip. Keep parking and toll receipts, and track total annual vehicle miles.
IRS car and travel guidance ↗03
Supplies and materials used on jobs
Supplies used in your business may qualify. Separate personal purchases, resale stock and long-lived equipment; do not count the same cost twice.
One useful actionMatch each receipt to a job and separate unused stock from materials already used.
IRS business expense guidance ↗Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Inventory and long-term assets can have different rules. General education, not individual tax advice.
