The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/ozymandios-if-i-have-a-quotroomquot-set-aside-22109269.aspx

Subject:  Re: Deductions against Schedule C Income Date:  2/22/2005  11:46 PM
Author:  3muttsmom Number:  77129 of 121258

Ozymandios:

If I have a "room" set aside with nothing else in it than a computer, printer, fax machine etc. that I mostly use to follow up on complex patients that I saw during the day, but that I also use for personel email etc., does that qualify as an
"office"?


Per Pub 587:

"Exclusive Use
To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. The area used for business can be a room or other separately identifiable space. The space does not need to be marked off by a permanent partition.

You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes.

Example.

You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Your family also uses the den for recreation. The den is not used exclusively in your profession, so you cannot claim a business deduction for its use."

The entire link can be found here:
http://www.irs.gov/publications/p587/ar02.html#d0e319

The IRS tightened up the restrictions a number of years ago because every person under the stars was trying to claim a home office deduction because they had a den in their homes.

3MM


Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us