Using a Motor Home as a home office works for tax savings??

Using a Motor Home as a home office works for tax savings??

Asheville, NC · Member since 2016 · 8 posts · 2 votes

Hello all. I have a question. I moved into a smaller home and don't have a office for my real estate business.

I had a thought the other day. I wondered if I purchased a motor home and used it as my business office if the IRS would allow that as a business deduction. I would also plan to use it for family trips and such as well. I'm guessing its a no, but maybe there is a loophole I can explore. Any thoughts or advice would be appreciated.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y

    @Michael Outar , unfortunately, the use of the space has to be exclusive to business. 

    Space should be used regularly and exclusively. 

    • Regular- Should use the office on a continuing basis. A doctor used a home office to treat emergency patient failed the regular test in the tax court.
    • Exclusive: have to be exclusive, and has no other use of the space. There are only two exceptions regarding storing inventory and certain daycare facilities. In the court case, Richard G. Cook, et ux. v. Commissioner, an attorney was denied deductibility for a portion of his residence used as a home office because he failed to meet the exclusive use test. While the residence was in fact the principal place of business for the law practice, the portions used for business were also personally used by the attorney and his family after business hours and presumably on weekends and holidays.

    Keep in mind that the deduction for business use of the home (other than from otherwise deductible expenses, such as mortgage interest and real estate taxes) is limited to net income from the business. 

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  • Asheville, NC · Member since 2016 · 8 posts · 2 votes
    8y

    Ashish thanks for the detailed response.

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