Home office - first day used for business

[len_tax]

Hi,

We (a married couple filling jointly) started a business (qualified joint venture) in the middle of 2020 (June 6th to be precise). We used a dedicated office space which qualifies as "home office expense". And we used it as our home office before we officially started this business for the same business purposes. Do I have to define the "First day used for business" on June 6th, 2020 (official business start date) or later? Or is it allowed to define it earlier than the official business start date (for example since 01/01/2020)?

Thank you!

Len

[AnnetteB6 · Accepted solution]

If your business did not start until June 6, 2020, then the home office would not be a qualified home office until June 6, 2020.

The home office must be used regularly and exclusively for your business and be the principal place of business.  If the business had not started prior to June 6, 2020, then the office would not meet these qualifications.

Even though you can claim start-up expenses for a business that you have incurred prior to the business being officially open, expenses for a home office are not considered a start-up expense.