Episode 59. How To Write Off Your Home Office (2026)

In this podcast, I break down how to write off your home office the right way in 2026.

It does not matter if you own a dental practice, a medical practice, a law firm, or a manufacturing business with a warehouse. Even if you already have a real office, you can still write off your home office and get reimbursed the right way.

These are the same home office deduction strategies I use for my tax advisory clients, and most accountants do this the wrong way.

Here's what I cover in this home office tax deduction podcast:

First, who qualifies for the home office deduction. You must have an exclusive use space in your home, and it must be used for administrative work. I tell you exactly why a home office that is used for administrative work can become the principal place of business for IRS purposes, even when you already have a main office.

Second, what you can deduct. I walk through the main home office expenses: mortgage interest, property taxes, insurance, and utilities. I tell you how to calculate the home office percentage using square footage, and why business owners with expensive homes can write off tens of thousands of dollars in home office tax deductions.

Third, how to reimburse yourself the right way. This is the biggest mistake accountants make with the home office deduction. You do not just stick a number on your S corporation tax return. You reimburse yourself through an accountable plan, the business takes the expense, and you do not pick it up as income. I go over how the accountable plan works and why the home office reimbursement is classified as a rent expense on your books.

If you are an S corporation owner, getting the home office deduction right with an accountable plan can save you a lot of money on taxes, and it is money sitting in your company that you can legally take out.

🆓  Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know:   https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout

*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.

Transcript

Why Home Office Can Save Big

SPEAKER_01 0:00

Alright, here I'm gonna talk about how to write off your home office the right way. Now look, I don't care if you have a dental practice or your medical professional and you already have an office with people and you have your own office, or if you're an attorney, have 17 locations and you have already an office, okay? Or you've got a manufacturing business, you've got a warehouse, doesn't matter. Even if you have all the real office, right, you can still write off your home office. And I will show you exactly how to do this, how to do this, how to get reimbursed, what's the right way to do it? Isn't it even worth your time? Is it even worth your investment in terms of like, hey, this doesn't make sense for me to write off? I've got clients that own a very expensive homes. Their mortgage interest, their property taxes, their uh insurance costs, their utilities are through the roof. And guess what? Getting reimbursed for something like that is super cool and will save you tens of thousands of dollars. So I'm gonna break down exactly how to do that. Home office. In order for you to qualify for home office, now some of you might be thinking, Boris, it may not be such a big deduction. Actually, you will be wrong. Like, I've got a lot of clients that have very big homes and they're very expensive homes, and even if you don't have that expensive home, you can still do this, obviously. They are writing off like what's this client? 90,000, 80,000 in home office tax deductions. And because they have an expensive home, so mortgage interest is higher, Mariana, property taxes are higher, mortgage more insurance is higher.

SPEAKER_00 1:22

Welcome to the tax reduction podcast for money-making entrepreneurs with Boris Mucheev. Boris has helped entrepreneurs across the United States collectively save millions of dollars in taxes with the power of tax planning and advisory. The only way you, the business owner, can save money on taxes is by using proactive tax strategies. And this podcast is all about saving you money on taxes. Boris will share with you in-depth and easy-to-understand tax reduction strategies that you can implement in your business within 30 days or less. Let's jump into today's episode.

Qualifying Tests Exclusive And Admin

SPEAKER_01 1:55

Alright, cool. Let's do it. Who qualifies for it? First of all, you must have an exclusive space in your home. Okay, so like, hey Boris, can I just use my basement? Well, what's your basement is used for? Well, in that corner I have a laundry, in this corner I have my kids' toys, and in that corner I have my desk. No. It has to be an exclusive use, okay? So I don't know how many of you saw me on Instagram. I posted up a video of my home office. Like I was talking about how I measured it and so forth, okay? So it has to be an exclusive use, okay? That means you exclusively use for the business. Number two, it has to be an administrative office, right? Administrative. What does that mean, administrative? Admin administration work that you do. So the type exactly, Marianna. Only administrative only administrative.

SPEAKER_00 2:42

But what if you're meeting with a client?

SPEAKER_01 2:43

Can you it does not qualify as your main office? So here's the thing: that's an excellent question today, Marianna. You are participating. So this is this is by the way, this is a great, great example, right? Hey, thanks

Free Resources And Working Together

SPEAKER_01 2:54

so much. Just a quick commercial interruption, literally, like five seconds. Uh, if you're a business owner making a million dollars or more in your business, I have a lot of free resources for all the business owners. But if you're making a million dollars or more, go check out save100know.com. There's a free training. I show business owners just like you how to save $100,000 or more on taxes in just 30 days. I also have seven taxwrite-offs.com. These are seven write-offs that every S Corporation business owner must know. You can get a free PDF. This is a training, and this is a free PDF. By the way, the links are down below in the description. Also, if you're ready to schedule a call with my team for your tax strategy and planning, I work with clients all over the United States. We're like, I think we're at 40 states. We save them over, like we save them hundreds of thousands of dollars in taxes. If you're ready to speak to us, you can go ahead to taxplanningcall.com and schedule a call uh with my team. Thanks

Example Dentist Admin Day At Home

SPEAKER_01 3:45

so much. Alright, so let's say, for example, this is you, okay, and you have a dental office. Okay? So let's say we've got a dentist, he's got a dental office, right? Obviously, he sees all the patients and everybody there. Then this is the same individual and now has a home office. Let's say in his home office it's exclusive exclusive use, he also has a dental chair. Right. Sometimes, you know, his patient doesn't want to travel to him. So he's gonna use his home and this as a like as a dentist. What's considered the principal uh location of the business is this one, dental office is the main one. But if you are in your home office doing administrative work, that's important. If you're doing administrative work, it is now for that purpose, it's for IRS purposes, considered the main location, right? The primary location. So that's what makes it a big deal. Like, wait a second, so I can have a dental office. By the way, I work with a lot of dentists and medical practitioners, they always have the administrative day, right? Sometimes we want to make an appointment to the dentist's office for the kids, right? What they say? No, the doctor is not here, or the doctor is here, or whatever. Like the doctor is not here, we're just doing billing or paperwork, right? So, dental offices. So, where is all the administrative work done by the doctor? They usually don't stay in their uh dental office or medical office, they go to their home. They work from home. Like I work with a lot of doctors, they have like a Friday. Yeah, let's let's talk on a Friday. I do a Zoom meeting with them there from home. Like, you know, they're sitting in their desk and they've got the papers and they're doing billing or whatever that is. That qualifies as administrative. Even though you have a location, this is now administrative home office, which is now a main

What You Can Deduct And Percent

SPEAKER_01 5:23

location. Now, how do you take a deduction?

SPEAKER_00 5:25

If you have a tax preparer and you do not have a tax advisor, the only way you can save money on taxes is by using proactive tax planning strategies that only a tax advisor can give you. Boris put together a free PDF for you, the business owner. Seven tax write-offs every S Corporation business owner must know. In this PDF, you can find seven tax strategies that you can start using in your business to instantly start saving money on taxes. Click on the link in the description below for a free download.

SPEAKER_01 5:56

The way to take a deduction, listen, you can take this, take this to your accountant, and it's funny. We had somebody buy our S Corporation Tax Secrets book, by the way. For those of you that don't know, we have an escorporation tax secrets book newly rewritten for 2026. Tons of tax strategies, it's only $19. It's escorptaxbook.com. Somebody left a review on that book, a testimonial. Why are you yawning? Are you bored already with me? Why are you yawning? Uh anyways, uh, so what was I saying? Oh, one person left a testimonial. They said they just switched their CPA and then they read my book, and they were happy to see that what their CPA is doing is correct because they read it in the book. Anyways, let's go back here. So, what can you deduct and how can you deduct it? Okay, so home office. Home office, uh okay. So we said expenses, right? Expenses. What so most of the business owners are homeowners, so we're gonna go with a situation where you own a home. So we've got the mortgage interest, uh mortgage, we got property taxes, we got insurance, we got utilities. Okay, those are like the main expenses uh utilities, okay? How much of it you can write off? So let's say your home is 3,000 square feet, right? A nice, beautiful home. You guys seen those ads on Facebook and YouTube where it's like, oh 50 miles, no, 30 minutes from Dallas, you can get this mansion for a million dollars. Like, damn! Like, have you seen those? Like amazing, right? So let's say 3,000 square feet, and your home office, let's say, you know, the the the space where you do your work, the exclusive area, is you know 15 by 10, so 150 square feet. Okay, so I'm gonna write 150 square feet. So what's the percentage? 150 divided by who has my phone? Thank you. Ah, you are innovative today. No, it's the other way. See, I can even divide it's 150 divided by 3,000. Oh, it's very good. 5%. Okay, so 5% of all of your expenses now tax deductible. Mortgage interest, property taxes, insurance, and utilities. Now, for some of you, mortgage interests could be very little, right? I don't know, like a thousand dollars a month. But I've got clients that pay like $20,000 mortgage interest, property taxes, like $50,000, right? And then I got some of the clients, the home office reimbursement for them, chiching, right? Cha-ching. So we do that, but how do you reimburse

Reimburse Yourself With Accountable Plan

SPEAKER_01 8:28

it? A lot of mistakes that accountants make with a home office, well, they don't really know and they are lazy. These accountants are lazy because they tell the client one thing. So if they have an S Corporation tax return, they tell their uh client that, oh, don't worry, I put it on the S Corporation return. What's the percentage use? 10%. How much was the mortgage last year? Oh, you think it was 30,000? Don't worry, I'll just put $3,000. I'll stick it in somewhere in your S Corporation return. No, that's not how it works. Okay? You have to reimburse yourself for that. Let the S Corporation legally reimburse you. Have there be a transaction. And you can do this through what's called an accountable plan. Okay, now accountable plan is basically a piece of document that you do not file with the IRS, it's just a compliance. I do this for all of my clients because we're a tax advisory firm. We make sure they are tax advised, they are compliant, and they save money on taxes, okay? So it's an it's a document that basically says, hey, you as an employee of the business, but also owner of the business, you have this amount of time to tell me how much you have spent on all of these expenses, which we talked about over here: mortgage, interest, property, tax, insurance, utility, and then we're gonna and the business is gonna reimburse you. The business is gonna take an expense. You as a business owner will not pick it up as an income. It's not a W-2 income, it's not a distribution. Now, people ask me, well, Boris, how do I classify home office expense? It is classified on my books for all of my clients' book as a rent expense. Done deal. It's a rent expense. Okay, so rent expense. That's it. Rent expense. That's how we put in our books. So our clients on a week on a monthly basis, excuse me, what we do for them is that we we have the we build a spreadsheet for them. It's uh it's called one-stop planner. We basically do all of our planning in that sheet. Super cool. All of our clients love it. It's interactive, it's plug and play. You put in the information, spits out to you. So this is one of them. It says exactly how much to reimburse them. They reimburse themselves, and then if we do their bookkeeping, we put it as a rent expense. If we don't, they we tell them to write it up as a rent expense. Okay, so that is how you write off the home office the right

Final Tips And Next Steps

SPEAKER_01 10:45

way. Okay, this is very, very important. Make sure you have an accountable plan. Make sure you are reimbursing yourself through that accountable. If you don't have a tax advisor, get yourself a tax advisor, get to do this the right way, and you can literally save a lot of money on tax by taking a home office deduction. For some of you, it may not make such a big difference, but it's still the money that's sitting in your company that you can take out. Okay? So, um, that is as far as that goes. Alright, guys, thank you all so much, and uh, we'll see you soon. We'll see you next week. Thanks.

SPEAKER_00 11:16

Bye bye.

Subscribe And Book A Call

SPEAKER_00 11:17

That's it for today's episode. Be sure to check out the description below for some free tax reduction resources that Boris put together for you. If you're ready to work with a tax advisor on your tax planning, be sure to schedule your call by heading over to www.taxplanningcall.com. That's www.taxplanningcall.com. And be sure to subscribe to our podcast to be notified when the next strategy is released.