topic My living room is exclusively my home office. It is 35% of my small 700 sq ft apartment. Is this percentage alarmingly too high? Is 35% of the home being an office OK? in Deductions & credits

My living room is exclusively my home office. It is 35% of my small 700 sq ft apartment. Is this percentage alarmingly too high? Is 35% of the home being an office OK?

NewYorkCity1 — Tue, 04 Jun 2019 19:24:10 GMT

Other examples in this forum cite 100 square foot offices in 2000 square foot homes, yielding offices totaling about 5% of the home. Though my living room is genuinely used solely for the business, I fear the percentage (35%) may seem abnormal and raise flags.

Don't worry. This is not a red flag. In a 700 square foot...

CarolynM — Tue, 04 Jun 2019 19:24:12 GMT

Don't worry. This is not a red flag.

In a 700 square foot apartment, the percentage of the home for business use will be greater than a home office in a larger home.

Line 2 of form 8829 reporting the Business of Home Office shows the total area of your home. This allows the IRS to see why your percentage is higher than other taxpayers may claim.

For more information, follow these links:

https://www.irs.gov/pub/irs-pdf/f8829.pdf

Business Use of Home Office