Question: am I eligible for the Home Office Deduction, and if so, how to ensure I am figuring it correctly given the below?
I am a software developer and have been working from home for several years now. I have a home office that is used exclusively for my work, but up till now I have not been able to do a home office deduction because I am a W-2 employee. This year I picked up a part-time side gig as an independent contractor (W-9). I now use the home office both for my regular software job and for my side gig.
- Side gig, started in April, will have worked 9 out of 12 months (3/4 of year)
- Home: 2000 sq. ft., Office: 200 sq. ft., so 10%
- Daily hours: W-2: 8, W-9, 4 (Side gig 1/3 of total hours)
Given this situation, can I still be eligible for the home office deduction? If so, then:
Do I need to take additional steps, such as dividing the space in two and using separate desks, and only deducting the section used for the side-gig?
Do I have to account for only having the side gig for 9 months, or can I account it as if I'd worked all 12, for:
a. direct expenses? b. indirect expenses?
If I can't divide the office physically, can I take the total area and divide by three to reflect the 1/3 usage for the side gig?
Note, I am not sure yet whether I will be using simplified "safe haven", or the general method of calculating expenses, so answers that speak to both situations are appreciated.