AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/27/2008 Subject: Business Use of Home
Question QUESTION: Hi! Thanks for reading my question.
I work for a startup and out of convenience to my employer, I work out of my home. I plan to deduct expenses for the portion of my home that I use for business.
Both my fiance and I own the home. We both contribute to the household expenses each month. How does that affect which expenses I can deduct? Can I deduct all of these expenses, or do I have to figure out what percentage of these expenses I pay - which is hard to tell since we combine our contributions?
Thanks again!
Megan
ANSWER: All the expenses would be allocated based on the square footage used exclusively for business - to the total square footage for the house.
---------- FOLLOW-UP ----------
QUESTION: Thanks! Just to clarify, I can deduct ALL of the expenses (based on square footage) no matter who individually paid them ?
Answer Yes, but I am speaking of things such as utilities, insurance and mortgage interest. You cannot deduct the base telephone line if there is only one line. However, If you have a phone line that is dedicated to the business, you can take all of it. Cable would not normally be allowed unless you could establish a legitimate business purpose.
