Work-at-home expenses allowed without a home-office

Hi June,

I am a self-employed film and video freelance editor and work out of my home as well as work on-site and go back and forth between the two sometimes. I can not deduct for a home office though because I share a one bedroom place with my fiancee.

My question is, even though I can not claim a home office, can I still claim expenses incurred from working out of the home, i.e. my editing system, my laptop, my editing software, my supplies, my entertainment expenses, etc? I certainly hope so. Please let me know.

Thank you for your time.
Sarah


Hello Sarah,

The short answer: Yes, you may deduct every one of the expenses that you questioned.

So many indies get mixed up on the relationship of office-in-the-home to other expenses such as office supplies and equipment. Even the experts get it wrong. Here's an example of how wrong they can get it --
It's tax time so ... beware of bad advice from the real-life Sammy Segar, CPA

Simply put there is no relationship between home office deduction and the deductibility of office equipment or supplies or any other business expenses. As I explained in the above noted post: " ... the deduction of office equipment and furniture has nothing to do with a home-office deduction. If you use a computer only for business it qualifies as a business deduction, even if it sits on your kitchen counter. If you have a printer perched on your home-office desk it does not qualify as 100% business use if your kid borrows it to print his homework. An ergonomic desk chair used only when you’re working at your business computer qualifies for a business furniture equipment deduction even though it, too, sits in your kitchen.

Where business equipment is located or used in the home is not relevant to a deduction. Nor is its use related to the size or even existence of a home office.

The same applies to all business expenses. In my book, Self-employed Tax Solutions, I use the following example: "Telephone expense is not directly related to office-in-the-home expense. You may deduct for a phone used in your residence even if you do not have an office or studio in your home. If you do claim an office-in-the-home deduction don’t think that somehow office size and phone use need to match. They don’t. Your home office may take up 10% of your residence but you may use 88% of your phone for business. No correlation, no problem."

-- June

PS: Take a look at Shared Rent: You may still deduct for home office . You may have a home-office deduction.