Submitted By: Ralph
Answered: September 28, 2015 12:25 pm

I am an employee who works exclusively from home. Can I take a home office deduction?

The home office deduction is allowed for both employees and self-employed individuals, with this difference: employees must use their home office for the convenience of the employer (not for personal preference). An employee who claims a home office deduction does not complete Form 8829 (that’s only for Schedule C filers); instead fill out the worksheet in IRS Publication 587. Then enter the deduction amount on Form 2106 (or 2106-EZ). Ultimately, the deduction is taken as a miscellaneous itemized deduction on Schedule A of Form 1040.

Tax Glossary

Capital gain distribution

A mutual-fund distribution allocated to gains realized on the sale of fund portfolio assets. You report the distribution as long-term capital gain even if you held the fund shares short term.

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