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Old 07-13-2015, 09:49 AM
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Work from home expenses

Hello,

I do tech support from my home for a large company (there is no office nearby)
I am required to have reliable internet and am looking to have comcast installed at either $6k for the full installation or $224mo with a 3yr committment.

I am logged into work through the internet for 2080 hrs a year during my normal work time and when covering on-call I have to be logged in for another 2000 hrs.

This connection is strictly work related and I am trying to find out if I can write this off on my taxes.

My work gives me a $50 mo allowance for internet, but due to my location I have very limited options (remote wifi option, that is unreliable)

Thanks for any help



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Old 07-13-2015, 04:20 PM
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I do tech support from my home for a large company (there is no office nearby)====>>Aslongas you use part of your home for business, you may be able to deduct expenses for the business use of your home; generally, when using the regular method( I mean you regularly use part of your home EXCLUSIVELY for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room), deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities. You need to show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. ALSO, If you are an W2 employee and you use a part of your home for business, you may qualify for a deduction for its business use.

I am required to have reliable internet and am looking to have comcast installed at either $6k for the full installation or $224mo with a 3yr committment. I am logged into work through the internet for 2080 hrs a year during my normal work time and when covering on-call I have to be logged in for another 2000 hrs.====>>>>>>> Self-employers who run a business from their home can deduct the cost of purchasing Internet access for their home. However, self-employed individuals usually will not be able to deduct the entire expense of purchasing Internet services, especially if you or other family members are also using the Internet for personal uses. The IRS will assume that in most households, the majority of the time spent online is for personal uses rather than for business.. if this is your case, then, you should estimate the percentage of your home Internet service is used for business purposes and prorate that cost to determine the amount of your deduction. In general, a typical amount to deduct is 25 % of home Internet access services.

This connection is strictly work related and I am trying to find out if I can write this off on my taxes.======>>Then, yes you can. As the Internet connection is technically a necessity if you work at home, you can deduct some or even all of the expense when it comes time for taxes. Since the COMCAST Internet connection is often a necessary expense in order to make money, you're allowed to deduct some of the cost on your 1040 tax return documents. Of course, only the Internet usage actually used for your business/work is deductible, so it's important that you keep careful records and only deduct according to the amount of time you spent using the Internet for work; Your Internet expenses are only deductible if you use them specifically for work purposes.

My work gives me a $50 mo allowance for internet, but due to my location I have very limited options (remote wifi option, that is unreliable).========>>>>>>>As said yes you can but you can not deduct the $50/MO allowance given to you under the nonaccountable plan however yes you can deduct it under accountable plan. How you treat the allowance on your tax return depends on if the reimbursement plan with your employer is an accountable plan or a non-accountable planIt's important that when deducting your Internet expenses on your 1040 that you use the actual amount of time you use the Internet for business purposes. For instance, if you only work from home 25 %of the time, only 25% of your costs are deductible. You need to out how much you actually use the Internet for work purposes and then assign a daily or monthly value to get a more accurate cost of use for work purposes. The IRS allows taxpayers to deduct Internet-related costs on their tax returns, aslongas taxpayer runs a small business from their home, or is an employee who uses the Internet to do work for an office-based job from their home. Taxpayers can only deduct the portion of their Internet access fees that relate to their work.



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Old 07-13-2015, 04:32 PM
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Thank you for the information.

Currently I have 2 internet connections coming into the house, one is for work and one is for home use.

I work 100% from home, there is no office to go to, as it is in Rhode Island

The connection I use for work is directly connected to my laptop and has no connection through the home network.

I am required to be logged in 8hrs a day 5 days a week, to access databases, using my VOIP for support calls and accessing the system for my logging.
1 week a month I am on-call 24 x 7 and my work computer has to be logged in the whole time.
The laptop is provided to me by my work.

The main issue is that my current provider has very spotty service and upgrading to Comcast would drastically change my access and functions at work, plus allow me to have better service (repairs) during off hours.

The cost for comcast is $6038 initial upfront cost, than $59.99mo.
My work will reimburse me upto $50mo for the service, but the installation costs will be my responsibility.
I am using a room in my home as my office, it is 10x10, that is setup for my work and for my computer repair business I do on the side.

This will be my first year doing the home office deduction and was hoping to be able to write off the Comcast installation

Thanks



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Old 07-14-2015, 04:50 AM
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Posts: 5,258
Quote:
Originally Posted by mytime34 View Post
Thank you for the information.

Currently I have 2 internet connections coming into the house, one is for work and one is for home use.

I work 100% from home, there is no office to go to, as it is in Rhode Island

The connection I use for work is directly connected to my laptop and has no connection through the home network.

I am required to be logged in 8hrs a day 5 days a week, to access databases, using my VOIP for support calls and accessing the system for my logging.
1 week a month I am on-call 24 x 7 and my work computer has to be logged in the whole time.
The laptop is provided to me by my work.

The main issue is that my current provider has very spotty service and upgrading to Comcast would drastically change my access and functions at work, plus allow me to have better service (repairs) during off hours.

The cost for comcast is $6038 initial upfront cost, than $59.99mo.
My work will reimburse me upto $50mo for the service, but the installation costs will be my responsibility.
I am using a room in my home as my office, it is 10x10, that is setup for my work and for my computer repair business I do on the side.

This will be my first year doing the home office deduction and was hoping to be able to write off the Comcast installation

Thanks
I am required to be logged in 8hrs a day 5 days a week, to access databases, using my VOIP for support calls and accessing the system for my logging. 1 week a month I am on-call 24 x 7 and my work computer has to be logged in the whole time. The laptop is provided to me by my work. ====>>>>>>.It does not matter how many hours you are required to be logged in a day/ a week

The main issue is that my current provider has very spotty service and upgrading to Comcast would drastically change my access and functions at work, plus allow me to have better service (repairs) during off hours.

The cost for comcast is $6038 initial upfront cost, than $59.99mo.
My work will reimburse me upto $50mo for the service, but the installation costs will be my responsibility. ==>The you can deduct you work related installation cost on your return.
I am using a room in my home as my office, it is 10x10, that is setup for my work and for my computer repair business I do on the side.This will be my first year doing the home office deduction and was hoping to be able to write off the Comcast installation=.Ok as mentioned previously.



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