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FORT WAYNE, Ind. (WFFT)- If you haven't reached out to a tax professional for advice, you may want to once you've realized those couple thousands you get from having a home office are a thing of the past.
"For people that use a significant portion of their home, and follow the rules appropriately, they would be able to take a large deduction, some of this meant tens and thousands of dollars to individuals at the end of the year when they file their taxes and that was a big deal," Casey Weade who is the president of Howard Financial said.
The change applies to employees who use a portion of their home exclusively for business, but not all hope is lost.
"If it's more of a home issue, talk about renting a portion of your home as home office. That's another work around. You may see more employers start to take on these expenses, so if they are taking on these expenses, they are deductible to the employer. They're not taxable to the employee, and you can ask for a pay reduction. Pay me less, but pay for my expenses," he added.
However, self employed and business owners with home offices aren't affected by this.
"You might even want to think about becoming a contractor."
That's what realtor Tim Dinius did and so far it's worked out for him.
"Realtors in particular, we're all separate contractors under a franchise umbrella,"Dinius said.
Dinius is a realtor with Century 21 Bradley.
He said that deduction is something realtors heavily rely on for advertising and new clientele.
"Every dollar amount helps no matter if you're a real estate agent, or electrician, whatever you're doing, every tax break helps people, so I do feel bad for the people getting penalized," he added.
If all else fails and you find that you can't bridge the gap with your employer, there may be another company willing to work with you.
If you'd like to check if you've benefitted from this deduction in the past, you can check your schedule A form. Unreimbursed employee expenses are listed on line 21.
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