Office in home if not home owner

Forum|Forum|5 years ago
November 16, 2020
1 reply
9 views

Tax payer has a girlfriend who is buying a house and they are looking for a house with a room or structure that T.P. can use as his office. He files single schedule C. Would he be able to claim a home office deduction and what is the impact on the non-spouse girlfriend? - she is the only one on the mortgage. Is there a simple way to handle this as a business transaction?

Thank you

Lacerte Tax

This topic has been closed for replies.

sjrcpa

Level 15

"Would he be able to claim a home office deduction"

What expenses would he have related to her house?

The more I know the more I don’t know.

L

LSTAXAuthor

Level 5

If he paid her rent for the use of a room for an office, could he deduct the rent as a business expense? She would then need to claim the income as rental income and set up a schedule E and depreciate the business use room in her home. If he paid for utilities, etc. could the amount be prorated on his schedule C? For example, if the total electricity and gas was $1,000 and he uses the room that is 10% of the total house, could he deduct $100 as long as he paid that amount to her? I know that he would not get to prorate mortgage interest or property taxes, but could she on her schedule E?

sjrcpa

Level 15

Personally I wouldn't go there.

If they were married and she owned the house, this wouldn't work.

The more I know the more I don’t know.

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