office for tax deduction

3 Replies

hey yall ill try to make this short. I have rental business , a 9 To 5 , and a freelance daycare cleaning job . At my house i own a separate building once used as a business by previous owners. Im using it as a 840 sq/ft storage and garage sale spot. The electric is combined with my house bill .

So my question is should i slap a desk in there and call it a office. How much do i actually have to use it per year for deductions . Is there much of a benefit to having a office ?

thanks in advance for any advice 

My knowledge of the home office deduction is outdated, but I do know it's a big flag toward getting audited. If you choose to do it either have a CPA do your taxes or consult with one first to make sure you know and follow the latest rules. Personally if I didn't need an office I wouldn't try to artificially create one to get a deduction. That probably wouldn't survive an audit. But if you need or want an office why not get the deduction?

It would not be a home office it's a separate building. I also would not create a artifical office for deductions. I would use it but irregularly . I wanted to know if there was a minimum amount of time that it must be used To be legally a office.  

The guidelines are that the home office must be used exclusively for business and regularly used for business. In your case, you satisfy neither of these requirements and thus are unable to claim it as a home office.

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