My husband is LLC owner and we have used one of our rooms in the primary residence for event equipment storage. Is that allowed tax wise, should we get a rental shed outside somewhere? Pls shed some light on this
Thanks
Under certain circumstances you can deduct expenses for the business use of your home.
You sell products at wholesale or retail as your trade or business.
You keep the inventory or product samples in your home for use in your trade or business.
Your home is the only fixed location of your trade or business.
You use the storage space on a regular basis.
The space you use is a separately identifiable space suitable for storage.
That's from IRS Pub 587 and you have to meet all those tests.
Your question is somewhat vague. If you're currently renting to yourself that's a zero sum game.
If you file as a Sole-Proprietorship (Schedule C) claiming that area as a home office may be advantageous for you.
You can find that under the Business Tab of the TurboTax Home & Business (desktop) or Self-Employed (Online)
Business Income and Expenses
select EDIT for the business if necessary
Scroll down to under "Business Expenses" "Home Office Expense" Start