Home office tax deduction while using a UPS Store mailbox?

Question

I need to use a street address for a dba filing and plan to use a UPS Store mailbox rather than my residence address. Can I still get a home office tax deduction with the business address different from my residence?

Thanks,

Chuck

Thanks,

Chuck

David Krulac · Answer

@Chuck Brooking

I'm not a CPA.  If you meet the IRS standards for a home office then the address is not an issue.  Another issue is that a DBA doesn't offer any asset protection, like either an LLC or a Corp. or even a Limited Partnership.

I haven't used a DBA in many years and prefer other entity structures.  I'm not an attorney either.

Also I've never used the home office deduction, even before I had a regular office in an office building.  There could be consequences of using a home office when you sell the home, or there could be local zoning issues in some cases.

One time I sold a house that had a "summer kitchen", which is a detached building behind the house that was actually used as a kitchen in the summer, so that the heat created in the kitchen would not heat up the house before air conditioning was invented.  The buyer said that they wanted to put a home office in the summer kitchen.  I knew that the zoning permitted a home office  but said check with the municipality zoning to be sure.  The did check and the municipality shot it down, because the office was not "IN" the house.  According to their zoning you could not have a home office in any other building than the home, no garage, no barn, no shed, and no summer kitchen.

Chuck, I also attend REIA meeting in Harrisburg, Camp Hill, York, and Lancaster.

Chuck Brooking · Answer

Thanks for the help @Jay Hinrichs, @Al Wilson, and @Blake Meester. I'm meeting with a CPA after April 15th. I'd rather set things up right from the beginning.

Thanks again!

Blake Meester · Answer

@Chuck Brooking

The ability to claim the home office deduction does depend on your mailing address. There is nothing in the requirements or tests that would make this an issue. I have plenty of antidotal evidence as I have many clients that use PO boxes that claim a home office deduction.

Check out IRS publication 587 and the Form 8829 instructions for requirements and specific tests.

Jay Hinrichs · Answer

@Chuck Brooking  check with your accountant... you may get an accountant on BP that will answer but short of an accountant answering this question I would not rely on the BP  folks to answer this we are as it were all just RE dudes.. not accountants but there are accountants on this site who could easily answer this for you I would guess

Chuck Brooking · Answer

Thanks @Jay Hinrichs. What I am trying to determine is if I have the business address, am I still able to deduct X% of housing costs for the percentage of my house I use for my business.

Jay Hinrichs · Answer

I would think you can get your mail anywhere its exactly what I do.

our mailbox's in our neighborhood are on the streets and are not secure.

so I have a mailbox at UPS.  also gives me one central spot for years and years for mail to go.. as we tend to change houses every 5 to 7 years..