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April 12, 2021
Question

I'm a Realtor. We were banned from our office for months and worked from home. Is this considered a home office situation? How do I deduct, as I am renting?

  • April 12, 2021
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1 reply

April 12, 2021

There are some restrictions, but this sounds like a home office situation.

You can claim the deduction on a home or structure that you rent from another party, but you can only claim it if you're self-employed – that is, if you file a Schedule C with your return to report income and claim expenses.

Please see the TurboTax Help article Where do I enter the home office deduction for my business? for entry guidance, and Can I take the home office deduction? for additional information.

Per the IRS's Licensed Real Estate Agents - Real Estate Tax Tips,

Licensed real estate agents are statutory nonemployees and are treated as self-employed for all Federal tax purposes, including income and employment taxes, if:

  • Substantially all payments for their services as real estate agents are directly related to sales or other output, rather than to the number of hours worked
  • Their services are performed under a written contract providing that they will not be treated as employees for Federal tax purposes

This category includes individuals engaged in appraisal activities for real estate sales if they earn income based on sales or other output.