Office in home deductions for an 'S' corporation?

Is it possible to deduct expenses for having an office in the home when you are a member of an 'S' corporation?

For example, is taking a year-end draw from the 'S' corp. to cover the past tax years applicable rent, electricity, office supplies, equipment, furniture, phone, etc.... OK?

THANKS

You can validly charge the corporation for your legitimate home office expenses just as you could charge the corporation for any other of your work expenses. If there are other shareholders or directors of the corporation, that would reduce their income and yours proportionately. In that case, you might want to consider the alternative of not having the corporation reimburse you and your taking the deduction for your own home office expenses on your 1040, which you can do if you have earned income from the S corporation.

follow-up question

Thanks Ioku!!

Our Partners have already taken 2001 distribs to cover our home office expenses for 2001.

I am not required to claim as income, the portion of my distribution that covers home office expenses (specifically RENT)?

Thanks again in advance!

If your K-1 from the S corporation includes the amount of the distribution reimbursing you for the home office expense, then you must treat that as income and you can take a deduction for the home-office. If the K-1 does not include that amount, that means the corporation deducted the expense and you do not include it as income and do not deduct it.