Home Office question - converting a structure

[biocmp]

We are expecting our 2nd child and we're already a bit tight on space. We have a concrete block shed that has been partially renovated into a workshop.  Has electric run to it, concrete floors, etc.

I've been considering having an architect draw up plans to make this a livable space and turn it into my home office. I work from home (IT work) for a large organization but I don't know what the rules are on claiming home office on taxes.   

Does anyone know the limits, limitations, etc?  This space is currently a 20 x 20 shed with a lean-to next to it. 

I'll continue doing some searches but any help is appreciated.

[terran]

As an employee (not self employed), the big question is whether your use of the home office is "for the convenience of your employer." You should look into what this means for yourself, but my interpretation is that if your whole organization works from home you should be fine to deduct the home office, if not your use of the home office is probably a privilege offered to you that doesn't really benefit your employer, and therefore probably isn't deductible.

This would be a good place to start: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction

[biocmp]

Thanks Terran, I've been doing a lot of reading on this and I can't come to a firm consensus. The company I work for is out of state and the job I was offered is technically a work from home position.  The difficulty is that the majority of my team members work onsite and I would be able to work onsite if I were to pack up my family and move. 

I think I quality as working from home for my employer's benefit but I'm not positive. Further, I see I can't claim improvements on my return. I can itemize and claim depreciation over a 39 year period or I can go the generic route and claim the $5/sq.ft. used.  I'll be running a separate internet line to my shed-office so I was hoping to claim that @100% as well.

I'll continue reading but in the meantime, additional feedback is appreciated.

[katsiki]

WFH positions qualify as far as I know, but I'm not a CPA.  We have been claiming this way for DW for 6+ years however.