There is an additional calculation that you have to make concerning the percentage of time spent conducting business in the home office that may be disallowing the deduction.
Actually, there are two questions related to the home office. I don't know the exact wording, but one is based on percentage of business, the other is based on percentage of time.
- Percentage of business conducted in the home office - Commonly this will be less than 100%. It just depends. For example, if you operate a barber shop in one room of your home, then 100% of your business is conducted there. But if you operate something like a computer network installation business, then less than 100% of your business is conducted in that home office.
- Percentage of time spent conducting business in the home office - This must be 100%. You may only spend one hour a day in that home office. But for that one hour you are conducting business one hundred percent of the time. The kids don't use that office for their game room, the spouse doesn't use that office to play on the computer or surf the web, etc. If that office is occupied by a human, then that human is in that office to conduct business, and absolutely positively nothing else.
