I live rent free in my parents second house. The house is paid off. I run a small business from the home am I able to claim home office deduction if I'm not on title?

[saveagentcarter4]

Trying to see if I'll qualify for home office mileage deduction. The house is paid for and I live in it rent free but I am not the owner my parents own the home and my name is not inthe deed. But I run a small pet sitting business out of two rooms.  

[Coleen3 · Accepted solution]

Yes, you can but if you don't pay rent or any other expenses for the house it may not be worth it. You can deduct the business percentage of your expenses.

Daily transportation expenses can be deducted if: (1) you have one or more regular work locations away from your residence or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business.

[KentuckyTax]

 I realize this is an old post but these home office questions tend to get some information that's not entirely accurate.  

You can use the simple method since you don't have any expenses.  However if you are not profiting from your business then you are not able to incur or carry forward any loss from the home office.   

To use actual expenses you will need to either pay them rent, pay the utilities, property taxes, mortgage interest, or some expenses toward the house that you can use.

[SweetieJean]

The original post asked about the home office mileage deduction (whatever that means!). 

[Carl]

Am I amble to claim home office deduction if I'm not on the title?

I don't see how it would be worth it. For starters, since you don't own the property, you have $0 cost basis in the property so there's nothing to depreciate. You might be able to use the simplified method though. As far as office expenses, if you pay the utilities for the house then you'll be able to claim a percentage of the utilities that is equal to the percentage of floor space that is the home office. I don't think that's an option though, if you use the simplified method. Not sure on that.

Trying to see if I'll qualify for home office mileage deduction.

Mileage deduction? Huh? If you're referring to business use of a vehicle, that has absolutely nothing to do with a home office.