Situation

Eddie Fiss works 40 hours a week at his small downtown office that he owns.

He also spends 12 hours a week working at home doing all the administrative tasks required for his consulting business.

Questions

Can Eddie claim tax deductions for any of these?

His downtown office only

His home office only

Neither office

Both offices

Answer

D. Eddie can claim deductions for both offices.

Explanation

Over the years, we’ve come across many small-business owners and tax advisors who believe that a home office is not deductible unless it’s the only place of business.

We designed this question-and-answer scenario to debunk the only-office misconception and illustrate that office space inside your home may qualify for a home-office deduction even if you also have an office for the same business outside your home.

Repairs and other costs related to maintaining a home are normally considered non-deductible ... Log in to view full article.