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Reuters: Everyone Has a Home Office Now. So Who's Paying for It? Thumbnail

Reuters: Everyone Has a Home Office Now. So Who's Paying for It?

Now that we are about nine months into working from home due to the COVID-19 pandemic, there is a good chance you have invested in some home office equipment.
 
But who should pay for this equipment? According to a survey by HR consultancy Mercer, about two-thirds of companies are providing or reimbursing for needs of newly remote workers; 55% are covering laptops, 33% mobile phones, 26% printers, and 24% ergonomic equipment.
 
What tax issues should you consider if you’re working from home? Mike Hennessy, CFA, CFP®, founder and CEO of Harbor Crest Wealth Advisors in Fort Lauderdale, Florida, says that if you’re a salaried employee, your best route is to get your employer to pay for home-office equipment and supplies up-front, or to get reimbursed for them. Under current tax law, such employees are not allowed to deduct those out-of-pocket expenses on their own taxes come April 15.

If you are not a salaried employee, however — for instance, if you’re a solo entrepreneur who does a variety of contract work — those rules do not necessarily apply. “As long as you are self-employed and part of your home is used for business use, you can take advantage of the home office deduction,” Mike Hennessy said. That way a percentage of related costs like mortgage interest, insurance, supplies, utilities, and repairs will be deductible.

Read more in the Reuters article, “Everyone has a home office now. So who's paying for it?”, here.

With unmatched coverage in over sixteen languages, and reaching billions of people worldwide every day, Reuters provides trusted intelligence that powers humans and machines to make smart decisions. Founded in 1851, Reuters has remained true to the Trust Principles of independence, integrity and freedom from bias, working relentlessly to bring news from the source and from every corner of the world.