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@AnnetteB6 Thank you for your response. After thinking about this further I am wondering if there is more of a gray area here though. It is true that the separate structure does not have a gas or water line, however clients do come into the main house to use the bathroom, and it would be impossible to operate any 9-5 business without access to a bathroom. In other words, the separate structure could not stand on its own and operate the business without the primary home structure being functional as well, which requires heat and water.

 

What do you think? Is it possible this logic could stand up against an audit?