Can I Deduct Home Office Expenses for an S-Corp?

If you're an S-Corp owner-employee, you can't take the home office deduction on your personal Schedule A (that's suspended under current law) or directly on the S-Corp return if the S-Corp doesn't own or rent your home. The workaround is an accountable plan: the S-Corp pays you a tax-free reimbursement for home office expenses, including the portion of rent or mortgage interest, utilities, and insurance attributable to your office space. The reimbursement is a deductible business expense for the S-Corp and tax-free to you as the employee — no income is recognized. This is one of the most powerful deduction strategies for S-Corp owners working from home.