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Tax Preparation online help - Home Office Expenses (continued...)

Home office expenses deduction test 2: home office regular and exclusive use test

In determining whether you meet this home office expenses deduction standard, you must determine if you use your home office only for business and on a regular basis or not.

For example, if you use your living room as a home office during the night and your family uses it to watch TV during the day, then you do not meet this home office regular and exclusive use of home office test.

What if I use part of a room for home office?

You do not have to use the whole room for home office. You can use part of a room for home office. If you use part of a room exclusively for home office business, then you meet the test. You also do not have to make physical partition of a room to separate your home office from other activities areas.


What if I use my home office for more than one home office business? - multiple home office businesses

If you have multiple home office businesses, you must meet each home office tax expenses deduction test for each home office business activity.


Home office tax expenses for Day Care businesses

Day care businesses are exempt from the home office tax expenses deduction test 2 or the home office regular and exclusive use test. For day care businesses, it is impractical to confine children to one area of the home office. Day care businesses follow different more favorable rules for home office tax expenses deduction rules.

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