QuestionsRunning a small business
Can I deduct my home office if my business is an S corporation?
Not on your personal return, but the company can usually cover it. If you work in your S corporation and take a salary, you are its employee, and employees can’t deduct unreimbursed work expenses; the 2025 tax law made that permanent. Instead, the S corporation reimburses you under an accountable plan: you document the expense, return anything you were overpaid, and the company pays you back. The reimbursement is deductible to the business and tax-free to you. A home office qualifies only if you use the space regularly and exclusively for the business, for the company’s convenience rather than just yours. We can help set up the plan and the records behind each reimbursement.
Authority: IRC §67(h); IRC §62(a)(2)(A); Treas. Reg. §1.62-2(c); IRC §162(a); IRC §280A(c)(1)
Updated November 2026. General information, not advice for your situation.