Sign Home Office Rental Agreement Electronically

How to eSign a document: Sign Home office rental agreement electronically

(chimes) - [Toby Mathis] I have an office within my home how do I show or indicate that on my taxes? So this is Tax 101 for Anderson. We do not like home office deductions, number one. And that means, you writing it off on your Schedule C. If you have a business, and you're using a home office, you're filing, I think it's an 8829, - [Jeff Webb] Right. - [Toby Mathis] And you are writing that off as part of your business, and it's on your return, and that's what everybody says, "Hey, there's a red flag." The red flag is that you're filing a Schedule C on your personal return. Not just the home office, but that home office certainly doesn't help. What I'd rather see is a corporation, S or a C Corp, in the mix, reimbursing you as an employee for your use or for the company's use of your home office, and it's not renting it from you, it's reimbursing you the expenses attributed to that portion of your home. So I'm going to draw this up. Let's say you have a house. And you have this little section of your house called a home office. And it is, let's say that this one is 10 by 10, so it's 100 square feet. What the IRS allows your employer to do, an S or a C Corp, is reimburse you the expenses of that home office. And the reimbursement is based off of the fact that you had expenses for the whole home, and it doesn't matter whether it's a rental or a purchased home. You still have expenses. You have expenses like real estate taxes, mortgage, utilities, - [Jeff] HOA - [Toby Mathis] All of it, HOA... Even things like depreciation. - [Jeff Webb] Yep. - [Toby Mathis] Those are all expenses, and what it does is it let's you pay a percentage back and, guess what? No where on your return does this money show up. And I say your return. This is the, say, I always use Krispy Kremes as my examples, but I say, if I ask Jeff, "Hey, on your way into the office, "grab some Krispy Kremes, and I'll reimburse you." And Jeff goes, and he buys a whole bunch of Krispy Kremes, and he comes into the office, and says, "Hey, that was 50 bucks," and we write him a company check for $50, where does Jeff report that? The answer is, he doesn't. He got reimbursed. So this is the most important word you'll ever hear: Accountable. This is called an accountable plan. When you have an employer, they can reimburse you for things that you incur on their behalf. And that's just, there's a laundry list of 'em, but the most important ones are things like your computer, your cell phone, your home, your utilities that you're using for the convenience of the employer, all those things, now it can reimburse you. So now we...