united-states federal-tax-law tax-law
Tax Implication of COVID-19 Induced Remote Employment
<p>A U.S. company has instructed it's employees to work from home for a period extending 4 weeks following city and state guidelines as a necessary precaution in response to COVID-19. Subsequently company workers have set up <em>makeshift offices</em> at home in. What if anything at all about the "makeshift office" is tax
deductible for the 2020 tax season ( -next year).</p>

<p>You will probably <strong>not</strong> be able to take a tax deduction for this. </p>

<p>The IRS requires that the space that you use for your home office is that the portion of your house is <strong>exclusively</strong> and <strong>regularly</strong> used for business purposes. It also must be the principle place of your business.</p>

<p>Some employees can use the home-office deduction, but there are tests there too:</p>

<ul>
<li>Your business use must be for the convenience of your employer</li>
<li>You cannot rent any portion of your home to your employer</li>
<li>You have to meet the above (exclusivity/regularly) criteria</li>
</ul>

<p>It's unlikely that you will be able to deduct a home office expense as a tax deduction for the 2020 tax year (2019 tax year has already passed) due to quarantine measures unless you continue to be quarantined for the remainder of the year (or a significant portion of it). </p>
