Home Office & Accountable Plan: Tax-Free Reimbursements for Business Owners
Running a business from home? Don’t miss out on one of the most underused strategies—the Accountable Plan.
What It Is:
An accountable plan is an IRS-approved method for your company to
reimburse you for business expenses you incur personally.
Home Office Benefits:
- Deduct rent, mortgage interest, property taxes, utilities, and internet based on business use percentage.
- Instead of claiming these on your personal return (which can raise audit risk), your company reimburses you tax-free.
Other Reimbursements Allowed:
- Office supplies.
- Cell phone and internet.
- Mileage and travel expenses.
Why It Matters:
- Reimbursements reduce your company’s taxable income.
- You receive them tax-free (not counted as personal income).
- Cleaner records and stronger compliance if audited.
👉 Pro Tip: Document reimbursements monthly with receipts and keep a written policy in place.