When you’re working from home under an S‑Corp structure, you can still claim legitimate home office deductions — if they’re done properly.
You’ll calculate square footage by comparing your home office area to the overall footage of your house. Then, use that percentage to understand how to deduct home office expenses.
By claiming write-offs through an IRS‑approved Accountable Plan, your S‑Corp can reimburse you for a fair share of your rent/mortgage, utilities, insurance, and more. This will enable you to take advantage of business deductions while avoiding double taxation — giving you a tax strategy that is both smart and compliant.
Simple calculations
Crunching numbers is easier than it sounds. First, measure the exact square footage of your home office and divide by your house’s total square footage. The percentage value becomes the share of expenses your S‑Corp will reimburse — everything from rent and storage space to utilities.
That’s how it works under the law: the Accountable Plan specifies guidelines for business owners like you to ensure they keep playing by the rules. You document the percentage, apply it to mixed‑use costs, and track receipts — clean and simple.
Making the most of working from home
Personal comfort can be just one of many benefits of working from home. By deducting home office expenses, you convert personal costs into legitimate business write-offs — leverage that home office to convert your daily commute into deductible travel from your office to anywhere else. Just be aware: while the typical deduction might only net $150–$350, the mileage benefit can be far more substantial.
While employing a business tax strategy, beware the dangers of filing your own taxes. Skipping the details such as proper square footage, a lack of thorough documentation, and failing to reduce Schedule A deductions (like mortgage interest/property tax) — can trigger audits. Getting expert help guarantees you don’t miss critical steps (for example, depreciation managed correctly at the corporate level under Form 1120S) and stay within IRS guidelines.
Quick Tips to Maximize Benefits
| Tip | Why It Matters |
| Using an Accountable Plan | Enables your S‑Corp to reimburse home office costs accurately; keeps reimbursements non‑taxable |
| Document square footage | Your % of home office coverage underpins all deductions |
| Keep receipts and logs | IRS requires strict substantiation — especially for mileage, depreciation, utilities |
| Depreciation handled by the S‑Corp | Home depreciation reduces basis — proper tracking matters |
Final word
If you’re an S‑Corp owner working out of your house, you’re entitled to claim the home office deduction. However, it just needs the right structure.
Use an Accountable Plan, carefully calculate the square footage of the space you use for business versus your overall home, and document everything. That way, you’re maximizing benefits, steering clear of pitfalls, and fully complying with the rules. When in doubt, leaning on a CPA can help you capture rightful deductions, optimize mileage, and build tax-smart habits.