How do you record a home office expense for a S Corp.?

Answer by  Melissa101010 (4405)

Usually you can record a home office expense for a S Corp by saving your receipts and filing it on your taxes. Make sure that you save copies and turn them into your accountant and they can handle the process from there for you and your business. The expense can also be a tax write off.

Answer by  richmiller3214 (138)

Home office exenses are based on the percentage of your home that the office resides. If the square footage of your home is 100 sq. ft and your office is 25 sq. ft then you can right off 25% of all home expenses related to your business. Debit home office expense and credit cash or equity.

Answer by  withsmluck (793)

Always keep paperwork (documentation) for all expenses (supplies and receipts). Home office deductions are basically the same for an S Corp as for a sole proprietorship. You will need to figure how many square feet of space is used in your home for work, and keep track of the utility bills because a percentage of the bills can be deducted.