Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<<I have a question that I've asked several people, somewhat in the know about taxes, but remain uncomfortable with their answers.>>

Uncomfortable why? Because the answers don't make sense? Or because you don't like the answers you were given?

<< I rent my home, and have lived here for 6 years.>>


<<Just this past spring I started my own business out of the house. The square footage of my office space is roughly 25% of the square footage of the house.>> problem so far. I ASSUME that you are qualified to claim the "office in home" deduction...since it looks like this is where you're going. If you need more information on the office in home deduction, check the Taxes FAQ area.

<< My landlord, bless his heart, decided that he would charge me two separate rents for the property, one officially business rent, and one personal rent.>>

Immaterial. If you qualify for the office in home deduction, you'll treat the TOTAL that you are being charged as the rent for the entire property. There would have to be a compelling reason why the landlord would do this (like for a completely separate structure). So simply splitting the rent has no bearing on the issues at hand.

<< He split the rent right down the middle, charging me half for each. My problem is, since the office only occupies about one quarter of the house, yet the "official business rent" is actually half my total rent, which one would the IRS>>

Add them both together, and then take the office in home deduction (assuming that you're qualified for the deduction) using the appropriate allocations. That'll solve your problem.

TMF Taxes
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.