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Investors & landlords
@rick-rose1 wrote:
"To find the business percentage, compare the size of the part of your home that you use for business to your whole house. Use the resulting percentage to figure the business part of the expenses for operating your entire home.
It's my understanding that the IRS applies the same principles of space allocation to rental spaces, and explicitly allows for proportional allocation of shared spaces in business use,
Those are two different things.
The way you calculate the percentage could hypothetically be based on something other than square footage. But it still needs to be qualified business space. To be qualified, it needs to be exclusively used for business or rental. You can not include spaces that are also used for personal use.
https://www.irs.gov/publications/p587#en_US_2024_publink1000226294