Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance

If I have a home office in Chesapeake va and want to open a

Customer Question
sattelite office towards the Richmond...
If I have a home office in Chesapeake va and want to open a sattelite office towards the Richmond dc..area
If we purchase a residence or rent a residence to run the office and my employee will live there and my other employees can stay there when there traveling in the dc area can I take this as a entire deduction for the payment on the residence ?
Submitted: 1 year ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 1 hour by:
5/3/2016
Financial Professional: Tax-Scholar, CPA replied 1 year ago
Tax-Scholar
Category: Finance
Satisfied Customers: 89
Experience: Helping customers comply with and plan for income taxes
Verified
Hello and welcome to Just Answers. Yes this satellite office would be considered a business expense and any rent/depreciation could be taken as an expense (along with any other expenses such as utilities, insurance, taxes, interest, etc). Any employee traveling away from their tax home on a temporary assignment can lodge at the office with no tax implications. However any employee that has a tax home in Richmond would be receiving a taxable fringe benefit by the company. This would need to be reported in their W-2 unless an exception is met. The exception requires that (1) The lodging must be on the employer's business premises; (2) the employer must provide the lodging for the employer's convenience rather than for the employee's convenience; and (3) the employer must require the employee to accept the lodging as a condition of employment. The last requirement makes it necessary for the employee to be onsite to perform his job such as a property manager for a apartment complex. For the company this is still deductible but could cause a payroll issue for the employee. The fact that the house is a residence really has no bearing on whether it is used in a trade or business. Treat it like any other office which is deductible. Let me know what else I can clarify.
Ask Your Own Finance Question
Customer reply replied 1 year ago
What,is the definition of a tax home in Richmond is there a distance requirement from our home office
Customer reply replied 1 year ago
Is there any rules against one of the employees being a family member
Customer reply replied 1 year ago
We are the owners of a sole propieiriship
My 27 year-old daughter will be running our satelite office she currently works with us now in our main office
Customer reply replied 1 year ago
Is this ok
Financial Professional: Tax-Scholar, CPA replied 1 year ago
Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home - IRS Pub 511. There is no exception for your daughter as long as she is adequately compensated for the free rent in her W-2. The convenience of the employer test does not apply to partners (or related persons) so this exception would not be available to your daughter.
Ask Your Own Finance Question
Financial Professional: Tax-Scholar, CPA replied 1 year ago
The other option would be to treat the living quarters as personal non-business property and only take the allocable cost of running the office as an expense. This would work since your daughter lives there. Other employees would still need the W-2 or meet the exception.
Ask Your Own Finance Question
Customer reply replied 1 year ago
Just to clearify my daughter will have to live in the residence we decide to open are sattelite office in why would she have to claim this as income on her taxes when in order for us to successfully run a sattelite office she has to be present almost most of the time I guess I am just trying to find out if we rent a residence in or near the Richmond Newport News area can we totally right off the rent we are paying the company that is
Customer reply replied 1 year ago
And also not have it effect my daughters income
Financial Professional: Tax-Scholar, CPA replied 1 year ago
Hi Mitt - As much as I would like to tell you this is all a business expense I just can't get there. Instead I would treat it as an in-home office and only deduct the portion exclusively used for business. The convenience of the employer test would only be applicable to employees who are not related to you. Also the convenience of the employer test is best illustrated by a property manager living on-site. It is a moot point if it is your daughter living at the office but just for discussion. An office job would not normally meet this test unless it was required in order to take the job. But as I just said this exception is only for unrelated employees.
Ask Your Own Finance Question
Ask Tax-Scholar Your Own Question
Tax-Scholar
Tax-Scholar
Tax-Scholar, CPA
Category: Finance
Satisfied Customers: 89
89 Satisfied Customers
Experience: Helping customers comply with and plan for income taxes

Tax-Scholar is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Have a sub s corp rental properties fully depreciated wish
Have a sub s corp rental properties fully depreciated wish to do a joint venture not a sale or transfer of property.. How can this be done without triggering capital gains? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have some questions about Residential Rental Depreciation.
I have some questions about Residential Rental Depreciation. I rented out a house in 1986 for a few years using the Acrs method of depreciation. Took the rental out of service after a few years. Now, … read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Lane, I'm depreciating a vehicle for "its first time" and
Hey Lane,I'm depreciating a vehicle for "its first time" and taking the Special Depreciation Bonus. My questions is during the same tax year of the S.D.B. can I also deduct the "Current Depreciation"?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Can I take depreciation on my investment property without
Can I take depreciation on my investment property without selling it … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
4 years into 5 year depreciation, contractor who was using
4 years into 5 year depreciation, contractor who was using computer equipment my C corp owned went out of business and lost the equipment to his landlord. I'm guessing I can write off the balance, but… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Double declining balance depreciation. Shouldn't the asset
Double declining balance depreciation. Shouldn't the asset be fully depreciated after the useful live if there is no salvage value? If this calculator is wrong, please provide a schedule that is corre… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
Depreciation of legal and architect and engineer fees for a
Depreciation of legal and architect and engineer fees for a commercial real estate property. Is it a capital improvement of 39 years and can it be bonus/accelerated ? … read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
285 satisfied customers
I am going to sell a rental property. I have depreciated it
I am going to sell a rental property. I have depreciated it $14,000. I am retired...what will my tax problems be? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
I need to depreciate a a/c machine for a car shop, what is
I need to depreciate a a/c machine for a car shop , what is the life of the machine? I also need to depreciate a lift for a car shop . What is the estimated life of the equipment? Thanks… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Can one take a "bonus depreciation" (50% depreciation in the
Hello, can one take a "bonus depreciation" (50% depreciation in the first year of service) on capital improvements done to a residential rental property? This is for the 2013 tax return.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How do I correctly make an entry for depreciation of
How do I correctly make an entry for depreciation of computer and office equipment (using software system Xero)? If the equipment was purchased in 2015, does the depreciation get recorded on Dec 31, 2… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
I have a question regarding stepped up depreciation and
I have a question regarding stepped up depreciation and being a real estate professional. … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
When you are taking depreciation section 179 for new
When you are taking depreciation section 179 for new furniture, can you use 7 years for the life?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can I have depreciation section 179 for new furniture that
Can I have depreciation section 179 for new furniture that cost me $700 on the form the 1120s?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Calculate car depreciation for my s corp My accountant says
Calculate car depreciation for my s corp My accountant says there is car depreciate limit defined by IRS. Acct uses 200 DB Hy calculation but restricted by annual irs limit for car. I need to how amou… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
2015 adjusting entries/depreciation for your or your CPA.
2015 adjusting entries/depreciation for your or your CPA. Our LLC account just sent me this email and I have no ideal what she is talking about. … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Sole proprietorship- if you sell a fully depreciated asset,
Sole proprietorship- if you sell a fully depreciated asset, does that money show up as income ? If so, where ? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Question .- if i want to do depreciation on a rental
question .- if i want to do depreciation on a rental property do i need to enter section 179 limit and how much it is ?also the property was purchased on 08/01/2016please advise… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x