Discussion:Business use of Home

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Discussion Forum Index --> Tax Questions --> Business use of Home


JackieHeart (talk|edits) said:

5 April 2006
I have a client that is MFJ. Both have W2 income of 96,000. They both have sch.C's also. One is a web design and the other is photography. My question is this, the husband works from home. His employer is in Plano TX. His wife does photography part-time and he does web design part-time. Which sch. C do I apply the use of home to? This is the first year doing their return. The husband did the return last year and the business use of home was on the photography business which showed a loss.

Dennis (talk|edits) said:

5 April 2006
are you sure you are meeting the exclusive use test? If you are, use two 8829's.

MDTaxgal (talk|edits) said:

5 April 2006
It's not gonna be pretty... basically you have to go back to the client and find out who uses what part of the house for what activty. I'd do a quick and dirty spreadsheet and then try to fanagle the software to comply with what the amounts should be. My tax software will only efile with so many 8829's attached - haven't had to do it for a while but it is doable.

Good luck

JR1 (talk|edits) said:

5 April 2006
In ProSeries, there's a box to check for multiple HO forms...don't recall what else I have to do for it, only two clients in that situation, but I seem to think there's not that much work involved in it..

Jackie started 2 new discussions, put the title in one place and the question in another. Consolidating them now. Interestingly, people found plenty to talk about with no OP and just the discussion title (see below):

JackieHeart (talk|edits) said:

5 April 2006
.


(blank OP on discussion titled "Business use of home")

JackieHeart (talk|edits) said:

5 April 2006
Sorry, that was a mistake.

JR1 (talk|edits) said:

5 April 2006
LOL! How about that one?

Martineo (talk|edits) said:

15 April 2006
Yes, Business use of home-

Do you think that would be good idea to recommend to set that "office" for a non qualified self employed like a carpenter, handyman, and so on. In my view, that situation creates some "lack of substance" Ideas??

Taxea (talk|edits) said:

16 April 2006
Does he use phone to set up jobs, contact clients? Does he use an area of his home to do his books? Create and mail invoices?

Home office qualifies and would include storage for his equipment

Natalie (talk|edits) said:

16 April 2006
??? Something is missing here. What happened?

Martineo (talk|edits) said:

16 April 2006
Okey- Reading in my book, I found that it was okey for

"A self-employed plumber has a small office used to phone customers, order supplies, and keep his books. And he had no other fixed location for doing administrative work." I remember I read some "time requiremtent" - I don't remember how many hours every week. But I don't find that info. I have a client doing lanscaping - I'm wonder if that could apply for him.

Martineo (talk|edits) said:

16 April 2006
Are u online now?

What is missing?

Natalie (talk|edits) said:

17 April 2006
It looks like the beginning of this discussion is gone. Or is your question on April 15 what this discussion is about?

MLG (talk|edits) said:

2006 April 17
I'm confused by the regs. SE home office can qualify as principle place of business without being exclusive. Yet home office requires exclusive use of space in home (not used by other family members or any other activity). This poses a problem for many SE individuals. Principle place of business benefit is "no commuting miles" yet they can't take expenses for home office?? Or am I missing something?

Martineo (talk|edits) said:

17 April 2006
Rules are extensive, and complicated- I got frustrating reading them.

I dont know if there are some changes this year- I remember last year I read something about the amount of time spend. Now, I think that one of my client- that do lansdcaping- can place a desk in some area in the house(No a a TV , radio, computer, or anything else) Do his paperwork there- He need a lot of time just to put receipts , invoices, and paperwork, ... and claim thatsmall area, as a business office. Them, it would be okey to consider "business miles" every mile he has to drive to do some business.

end of the discussion that had no OP question

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