I work for a large German corporation remotely here in the states. They do not provide an office for me. I've been claiming the "home office" deduction, but now that I'm having kids, I'm thinking of renting an office. If I purchase or rent an office, how much of that expense can I deduct off my personal income?

ANSWER

The BIDaWIZ Team's Answer:

Technically speaking, this expense wouldn't qualify for the business use of a home office deduction since it's not related to your home. Reference IRS form 8829. However, if an employee needs an office to perform their job, then it would be a necessary expense. The IRS will then need to have proof that this is an ordinary expense meaning that it is accepted and common in your line of work. Therefore, we would conclude that if having an office is part of the terms of employment, then renting an office would be an ordinary and necessary expense. However, you will need to confirm this with your employer and maintain documentation of the confirmation.