Owner occupied MF office room tax deduction?

Question

Hello,

Is it possible to avail tax deduction on an office room dedicated for rental real estate matters for an owner occupied multi-family?

I am just  trying to see where  there are some tax saving opportunities so that  I can put forth in front of my cpa.Separately I have a w2 from a full-time job.Appreciate your inputs.

Thanks

Basit Siddiqi · Answer

@Kumar GauravThere are two tests to pass for you to take a home office deduction.Regular and exclusive use.If you only have 1 rental and you use the office for 1 hour a week - You would want to see if that passes the regular use test...If you have more rentals and more time is used on the home office, then it is easier to justify.

Kumar Gaurav · Answer

@Ashish Acharya

Thank you very much Ashish, I was at a loss on what should be the right questions to ask.I will propose this.

Ashish Acharya · Answer

Yes, it has be be planned properly.

Can be taken on Sch E but if he is treating rental as not trade or business and such then ask him to pay yourself a management via sch C and take home office deduction against that income.

Kumar Gaurav · Answer

@Ashish Acharya

Thank you Ashish

Yeah the room is exclusively used for drafting leases and other rental book keeping activities.CPA mentioned Home office does not apply to rental real estate unless that is your main income.How do I convince him?

As It may be too late to find another CPA now

Thanks