I've been self-employed for many years and I do most of my work from home. In years past I owned a condo, and calculating the "Expenses for Business Use of Your Home" was always really straightforward.
But then I moved in with my fiance, sold my condo, and we got married several months later. I now live and work from his home and I contribute towards the housing payment. And since the home is not "mine" (is it?) I'm not sure how to characterize my home expenses.
I give him money for half the housing costs. Let's say the housing payment is $2,000 each month (which includes mortgage, interest, property taxes, insurance, and HOA fee). So I pay $1,000 each month. I send this money directly to my husband's checking account, and he pays the bills out of his account. He owned this home before me, so the mortgage is in his name only, and the house is also in his name only. We file our taxes separately. I don't get any kind of Form 1098 from the bank since the loan isn't in my name.
So, can I simply classify the $12,000 I paid this year as 'rent' when I'm figuring my Home Office expenses? I think it was definitely rent for the few months before we were married, right? What about after we became married? Can I still 'rent' half of the home? Or do I need to take some of his mortgage interest deduction, some of his property tax deduction, etc (and I suppose he has to subtract my portion from his deductions, even though the 1098 is fully in his name)?
-Rebecca
