Utilities and other expenses with no home office deduction

Question

If I don't take the home office deduction, can expenses for utilities still be deducted? I am referring to phone, internet, gas, & electricity.  How should these be prorated?

Also, what are the other common expenses that can be deducted that don't depend on the home office deduction?  Thanks

JMSSGV · Answer

You can't take a home office deduction, or any deduct any related expenses, unless you're self-employed. Since you didn't mention whether that is your situation, just thought I'd mention it since many people still think that W-2 employees can deduct business expenses.

AlexO · Answer

Hello, bogleproof!

That is a great question!

If you qualify for the home office deductions, you should claim the expenses related to the use of your home, such as mortgage interest, gas, and electricity, via the home office deduction. You must use a space within your home regularly and exclusively to qualify for the home office deduction.

If you don't qualify, you can't claim expenses directly related to your home, such as gas and electricity as business expenses.

Expenses that are not directly related to home office use, such as internet and phone bills, may be prorated and deducted even without the home office deduction. You can prorate the bills based on personal vs. business usage.

For more information, see the link below:

https://www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxes