Ministries
View All Ministries
Sorry, your search returned no results :(
Sign In
MoneyWise with Rob West & Steve Moore

Deducting Your Home Office

March 4, 2021

In 2020, millions of people found themselves working from home for the first time. Maybe you’re one of them. Does that qualify you for a home office deduction? The answer is that it depends. If you do qualify, it could save you hundreds of dollars or more on your tax bill for 2020. Today, Kingdom Advisors President Rob West has what you need to know.

•          There are two levels of qualifications for deducting a home office. In addition to working from home for the first time in 2020, some folks may have had their employment status changed from a regular W-2 employee to a 1099 or to contract worker.  If that’s the case, good news! You only have to meet the first level of qualifications to deduct your home office expenses.

•          Here’s a basic home office requirement: You use a part of your home regularly and exclusively for work. Let’s say you’ve converted the guest room into your office. You can no longer use it as a guest room. So, desk and file cabinets, okay, but bunk beds or a couch and big screen TV are not okay. And since the deduction is based on square footage, obviously, the larger the space devoted exclusively for work, the bigger the deduction.

•          You can still qualify if you use your home office to conduct administrative or management activities for your company and the company provides no other space for that work. What qualifies as administrative or management work? Things like billing, bookkeeping, ordering supplies, setting up appointments and writing reports. But again, the majority of that work must be done at home.

•          In addition to meeting all those we’ve already mentioned, you must also pass what’s called the “convenience of employer test.” To qualify for the home office deduction as an employee, working in your exclusive office space must be a condition of your employment. In other words, no other space is provided for you. It must also be necessary for the business to function properly. Finally, it must be necessary for you to perform your duties. That’s where it gets difficult for regular W-2 employees to qualify, especially those who found themselves working from home at times during the COVID shutdowns.

•          We recommend you consult with a tax professional before taking a home office deduction.

 

On today’s program we also answer your questions:

 

•           What can you tell me about refinancing my home?

•           I’m about to retire. I have a 457 plan through my employer and I also have an IRA from another job. Should I combine these two and what’s the better way to do this?

•           I worked for a company that matches my 401(k) and I’m maxed out on that. They also have options to where I can convert part of the money I’ve saved with that into a Roth IRA. If I converted that now, would there be a tax advantage?

•           I’d like your opinions on trust vs. will vs. transfer on death.

 

Ask your questions at (800) 525-7000 or email them at questions@moneywise.org. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Featured Resources From MoneyWise

Free Resources
Stay Connected with your favorite Ministry Newsletters and Devotionals
More Newsletters
In addition to your newsletter(s), you will receive email updates and special offers from Oneplace.com.
Listen to MoneyWise
on Amazon Echo and Google Home
LEARN HOW

About MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West and Steve Moore, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West & Steve Moore

Rob West is the host of the nationally syndicated radio programs MoneyWise and The MoneyWise Minute heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


Steve Moore
joined Larry Burkett at Christian Financial Concepts in 1985. The radio network grew from two hundred to over twelve hundred stations in just a few years with "How to Manage Your Money and Money Matters" being recognized with a number of national awards. Steve remained as co-host and Vice-President of Broadcasting through the CFC/Crown merger in 2001 and Larry Burkett’s death in 2003. He then hosted the Money Matters program with Howard Dayton until 2007.

In the spring of 2011, Steve and Howard Dayton felt the time was right and that God was directing them to once again start a daily radio call-in program that would help people find practical and biblical ways to manage their resources.

 

Contact MoneyWise with Rob West & Steve Moore

Mailing Address
MoneyWise
P.O. Box 471526
Tulsa, OK 74147


Telephone
1-800-525-7000