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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Business use of home
Expert: John L. Tidwell
Date: 5/10/2008
Subject: Business use of home
Question
QUESTION: I have converted a covered carport into a studio to be used strictly for business. Can I deduct the expenses?
ANSWER: Alex:
Yes you can.
John
---------- FOLLOW-UP ----------
QUESTION: Thanks,that is great - but how do I deduct it? Or should I say where- on what IRS form?
Answer
Alex:
You may not deduct the cost of converting the carport. However, you may depreciate the cost of converting the carport and deducting it over a period of time.
Since your studio is part of you home, you must calculate what part of the total space of your home the studio makes up and deduct that percentage. You must use the room exclusive for that purpose YOU MAY NOT also include you personal private papers, bills, and other items into the business use area, because if IRS verifies that its not exclusive it could cause you to lose the deduction.
The expenses your business pay can be deducted on the business tax return which ever one it is. That is a general overview of your question.
John
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