topic Re: Separate Structure business deduction- in Business & farm

Separate Structure business deduction-

sherashirley — Mon, 09 Mar 2026 09:19:44 GMT

We bought a new residence in 2021 which includes a barn and acreage for our 3 horses. I have a horse business. In claiming the home office/separate structure for this business I put 100% of the structure is for work (storage of supplies and hay as well). When I input property tax to the expenses, the calculation took 100% of that and then my property tax deduction under personal deductions was totally skewed so I removed it from this business (we have 2 other home based businesses as well). The value of the barn is about $125K and I'm flummoxed by how to make this initial home office set up work!

Re: Separate Structure business deduction-

ColeenD3 — Wed, 02 Mar 2022 14:33:23 GMT

Enter the figures manually. Calculate the business square footage as opposed to the total square footage. Prorate expenses according to that percentage.

Re: Separate Structure business deduction-

sherashirley — Wed, 02 Mar 2022 14:58:37 GMT

Do you mean add the barn square footage to the house square footage and then do a percentage of the property tax based on the percentage of the barn to total?

Thank you for your reply!

Re: Separate Structure business deduction-

ColeenD3 — Wed, 02 Mar 2022 15:35:13 GMT

Yes. I am assuming you have one property tax amount that covers both properties. You may have the same situation with a mortgage. Since the rest of the expenses will probably be 100%, this will be the only thing you have to prorate.

Re: Separate Structure business deduction-

sherashirley — Wed, 02 Mar 2022 16:01:11 GMT

Thank you! I also have utilities (prorated number as well?) There is so little guidance about separate structure home offices on IRS site.

I appreciate the help!!!

Re: Separate Structure business deduction-

ColeenD3 — Sat, 05 Mar 2022 16:30:18 GMT

If both structures share the same utility bill, then yes, you would have to prorate.