The Wall Street Journal recently published an article on remote work, indicating a shift back to in-office work for many employees. Employers appear to be regaining control as job openings and the job quit rate decline.
During the pandemic, remote work became more convenient with just a phone, a laptop, and good internet service. Similarly, the pandemic led to an increase in retail traders, though not all succeeded, some prospered, and others established their own trading businesses.
Operating a trading company from home allows you to set up a home office. As a legitimate business, you can deduct home office expenses from your income.
Home-office deduction
Self-employed individuals using part of their home exclusively and regularly for business purposes can deduct expenses related to a home office. However, to qualify for this deduction, one must have self-employment income. This deduction is not applicable if you receive a W-2 from an employer for working from home.
A simplified method permits taxpayers to use a rate of $5 per square foot of the home used for business, up to a maximum of 300 square feet, to calculate the business use of home deduction. This could reduce taxable income by $1,500 annually. More details are available in IRS Publication 587, Business Use of Your Home.
There are numerous financial and convenience incentives for working from home, which are included in my book. Take advantage of these opportunities and enjoy a balanced lifestyle. Happy trading!
Enuf said.