Bought a house for dog boaring

[hozung]

I just bought a house with all cash to do dog boaring at home. I also use the house as a home office to do graphic design from home. Will I be able to claim the purchase price as expense to start the business? Can I claim the house as home office twice for both the dog boarding and graphic design business?

[Juliane22]

Hi hozung! Great question! For an area of your home to be claimed as a business deduction, it has to be used exclusively for the business. For example, if there is an area that is used exclusively for dog kennels in your home, expenses for that portion could be deductible. However, any space that the dogs use, but is also your personal living space would not be deductible. The same also applies to the home office, it must be used exclusively for business and cannot be counted twice for both businesses. If it is exclusively used for business, you would have to allocate the percent you use it for graphic design and the dog boarding. I hope that helps!