Home office / Salon

[marygruver]

Hi! I have a in-home salon at my  house. It's originally a sunroom on the front of the house with a separate entrance and also closed off to the rest of the house. I know there is a deduction with it being a "separate structure." One of the examples was a garage (most are attached) Could I apply that it's a separate structure because of it being an add on and completely closed off from the house? Thanks! 

[ColeenD3 · Accepted solution]

You do not have to have a separate structure. It can be any part of your home as long is it is exclusive use.

To deduct expenses for business use of the home, you must use part of your home as one of the following:

1. Exclusively and regularly as your principal place of business for your trade or business;
2. Exclusively and regularly as a place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business;
3. A separate structure that's not attached to your home used exclusively and regularly in connection with your trade or business;
4. On a regular basis for storage of inventory or product samples used in your trade or business of selling products at retail or wholesale;
5. For rental use; or
6. As a daycare facility.

Pub 509

@marygruver

[Carl]

Just to clarify, being closed off from the rest of the house does not make it a separate structure. In order to be a separate structure it my have no physical connection to your primary residence.  You'll just claim a home office as indicated previously and work it through using the provided guidance.