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Can a Schedule C can be submitted for an insurance agent who maintains a separate office space, even though s/he received a W-2?

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George4TacksAnswer

Level 15

Have taxpayer get a corrected W-2 as a statutory employee.

Answers are easy. Questions are hard!

Just-Lisa-Now-

Intuit Community Champion

Is this a Statutory Employee? (the W2 will be marked as such if so)

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D

david21Author

Level 2

That is what I am trying to figure out. Being an insurance agent, s/he could be a statuatory employee, but the W-2 is not marked as a statuatory employee. Yet, s/he has to maintain a separate office and has office expenses. So, it seems like s/he should be able to file as a business and deduct those expenses somehow.

qbteachmt

Level 15

When s/he has to maintain on office and incurs expenses because the employer requires it, the employer is supposed to reimburse for those costs under An Accountable Plan, or pay the person enough that they know they are absorbing these costs. There is no "could be a statutory employee" because there either Is or Is not, marked as such on the W2.

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sjrcpa

Level 15

Without income there is no office in home deduction so you are not going to get around it.

https://proconnect.intuit.com/community/proconnect-tax-online-discussions/discussion/how-do-i-deduct-the-cost-of-maintaining-an-office-as-a-w-2/00/86257

Also if they are not a statutory employee they are in the trade or business of being an employee and not self employed so no Sch C.

The more I know the more I don’t know.

BobKamman

Level 15

The only way such individuals can be considered statutory employees is if they fit this definition:

A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.

So there's not enough information here, because we don't know whether the taxpayer primarily sells life insurance or annuity contracts, and whether it is primarily for one company.

Otherwise, Congress in late 2017 in its wisdom passed a law eliminating "office in home" deductions for employees, and the President in his wisdom signed it.

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