Monday, March 4, 2013

Office-in-Home Wishing Thinking

Q.  Since I am a self-employed full-timer and work exclusively out of our coach, it seems I should be able to take an office-in-home deduction. Do you agree?

A.  Unfortunately, it's impossible to live in a motor-home and or trailer, 5th wheel etc., and qualify for an office-in-home deduction, regardless of how logical it may seem.  The circumstances which allow you to take this deduction are as follows:

  • Exclusive use test.  You must use the area designated for business purposes only. Any other personal use such as eating, sleeping, or storage, disqualifies this deduction.
  • It must be used regularly. Occasional or incidental use will also disqualify the deduction.
  • If the space is used for other than a trade or business, even if profitable, will disqualify the deduction.
Under these stringent guidelines, even walking through the area from 1 place to another would be considered personal use. 

No comments:

Post a Comment