I have a pretty solid grasp on my taxes and have done ok filing via TurboTax the last few years. This year though I will have a new twist that I am uncertain about. I am a family practice doctor but my work is 100% remote/telecommute. I get a W-2 for my “day job” and several 1099-NEC’s for side gig independent contractor work. These 1099 jobs bring in almost half of my income. I make quarterly estimated tax payments. The twist is that my tax home/domicile is in Florida but I now have a condo in Ohio as well. So I plan to spend 180 days/year working at the condo in Ohio and the other times at the designated home office in my home in Florida. Florida has no state income while Ohio does. None my work companies are based in Ohio.
Here is my question: What are my potential deductions for use of the Ohio condo for business lodging? I will be working there 7 days/week all 180 days I’m there, do not rent it out, no personal or entertainment use etc. In the article referenced below the CPA author gives her example #1 that is very similar to my scenario only in her example they use the 2nd home 37 days versus my 180 days. The author states that is a 100% business asset and is deductible as such. What does that mean exactly? Does that mean deduct only the 37 (180 days for me) use or the entire year’s worth of upkeep costs? My condo in Ohio is new in a tax-abated development so there are technically no property taxes but in it’s place there is a new community authority (NCA) fee that is currently a whopping $12,400/year (and may go higher). HOA fees are $586/month. I also have costs there for internet, utilities, water. These are of course separate from expenses I have at my tax home/home office in Florida where I take a home office deduction and my business expenses there. Can I deduct some/all of the condo fees as a business use expense? Per IRS topic 511 it lists “other ordinary expenses related to your business travel . . . and operating and maintaining a house trailer.” This sounds very comparable to a business/office condo used 100% for business use to me. I believe daily per diem meals could also be deductible while there for all 180 days? All travel to/from Florida and Ohio for working should also be fully deductible? My main question is how much of that $19,400 in annual condo fees can I knock down via business related travel use in the Ohio condo? I will cross-post this to the taxes forum as well.
Reference:
candicegerlachcpa.com/creating-deductions-by-using-your-vacation-home-for-business-lodging
