If I am an S Corporation owner and have work from home as well as another office, can I still claim the home office deduction? I have another contractor that performs duties in this other office and I'm hardly there. However, the other office is where we receive the majority of our mail.

ANSWER

The BIDaWIZ Team's Answer:

It may be possible to claim a home office deduction based on the facts and circumstances that you've provided. The key area to address is whether or not your home office conducts the majority of the management and administrative activities for the business. Specifically if you reference IRC Section 208A(c)(1) & IRS Publication 587, even if you have multiple office locations, you may still be able to claim the home office deduction if the majority of the management and administrative duties are conducted in your home. Please also that the if the S corporation has an accountable plan, the reimbursed home office expenses are deducted as an ordinary expense on Form 1120-S. In addition don't have to report the reimbursement as income.