As remote work continues to be the norm for many workers, home office setups have become increasingly important. However, setting up a home office can come with a significant cost. Fortunately, there are ways to write off these expenses on your taxes. Here’s what you need to know about how to write off home office purchases in 2023.
Did Home Office Write-Offs Change in 2023?
First, it’s important to note that the IRS did not make any significant changes to the tax requirements for home office deductions between 2022 and 2023. The basic rules still apply: to qualify for a home office deduction, you must use part of your home regularly and exclusively for business purposes.
The IRS allows two methods for calculating your home office deduction: the simplified method and the regular method. The simplified method allows you to claim $5 per square foot of your home used for business purposes, up to a maximum of 300 square feet. The regular method involves calculating the actual expenses associated with your home office, such as mortgage interest, utilities, and home repairs, and deducting a percentage of those expenses based on the percentage of your home used for business purposes.
If you opt for the regular method, you can write off the cost of any furniture or renovations that are used exclusively for your home office. This can include items such as desks, chairs, filing cabinets, bookcases, and office supplies. To be eligible for a write-off, the item must be used solely for business purposes.
It’s important to keep detailed records of all expenses related to your home office, including receipts, invoices, and other documentation. This will be necessary if you are audited by the IRS or if you need to provide documentation to your accountant.
If you are using the simplified method, you cannot write off specific purchases related to your home office, but you can still claim the $5 per square foot deduction. This may be a good option if you do not have many expenses related to your home office or if you do not want to keep detailed records.
Know What You Can and Cannot Write Off
When it comes to furniture purchases, it’s important to note that not all items are eligible for a write-off. For example, if you purchase a new sofa for your living room, it cannot be deducted as a home office expense, even if you occasionally use it for work. The item must be used exclusively for business purposes.
If you are unsure whether a particular item is eligible for a write-off, it’s best to consult with a tax professional or accountant. They can help you determine which expenses are deductible and ensure that you are following all IRS guidelines.
Ready for More Home Office Furniture? Contact Marathon
Writing off home office purchases in 2023 is still possible under the same rules as in previous years. Keep detailed records of your expenses and consult with a tax professional or accountant to ensure that you are maximizing your deductions while staying within IRS guidelines. Investing in quality furniture and equipment for your home office can not only improve your productivity but also offer tax benefits that can help offset the costs. Marathon has a great inventory of office furniture that is perfect for your home office. Browse both new and previously owned office furniture and create the home office of your dreams.
