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Vent: Home office deduction vs. actual expenses is not even close for me
I see everyone online saying the simplified home office deduction is the way to go because it's easier. But I ran the numbers for my setup in Portland last year and the actual expenses method saved me $1,200 more. My internet, a portion of my electric bill, and new office chair all added up to way more than $5 per square foot. Has anyone else found that the simplified route actually cost them money?
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smith.lee2mo ago
Jumping off what sagejackson said about the depreciation thing - that's a big one people miss. You can also write off a chunk of your home insurance and any repairs you did to the room you're using as an office, like if you painted it or fixed a window. I found that once I added up my internet bill split by the square footage, plus the electricity for running my computer all day, the actual method was way ahead for me too. It's more paperwork upfront but the savings are real if you take the time to track it right.
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sagejackson2mo ago
actual expenses method saved me $1,200 more" is exactly why I hate when people push the simplified route like it's the only option. Did you include depreciation on your office chair and equipment in that number? Because I've seen people miss that when they switch from simplified to actual and it throws off their whole comparison.
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