Home Office Deduction - What if you have yet to buy a property?

3 Replies

I’ve poked around online and used the search function and couldn’t come to a definitive conclusion. 

As it stands I have one property in my name that technically is a rental. I live 2.5 hours away and my mom cuts me a check every month. I rent with my girlfriend and we are moving into a 2 bedroom next month. I do a lot of reading, webinars, phone calls, group calls etc. as I prep for my next purchase and plan on using the spare room exclusively as my home office with my desk and office equipment.

With the one property that I already have would I run into any deduction issues? Or should I play it safe and not consider it until I a property not in any way tied to a relative of mine?

Thanks in advance. 

You can’t take a deduction if you are not paying for housing. But if you are renting a place and you use the second bedroom as a home office, then you should have your accountant write that off for you.

An accountant can give you the exact guidelines for what makes a space qualify as a home office.

I actually reached out to a long time friend who works for the IRS and audits small businesses but according to him I should be fine. 

Thanks Andrew. 

@Ernesto Hernandez I would also see how the new tax bill effects this

Please note if your going to deduct it then your going to need to claim the rental income you receive (if you do not claim it)

Also a home office deduction is so minor as you do not deduct the entire rent you deduct the SF of the room from overall and having a home office deduction is one of the top things that gets people audited as the room can only be used for that purpose.

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