I am self employed, My home office is a converted shed that is attached to the roofline of my residence. Can I deduct the rent I pay for using that space as my home offic

[7399ps]

office is approx 128 sq ft. and separate electricity and air/ heat

[KrisD15]

To clarify, are you a Schedule C Sole-proprietorship and to whom do you pay rent? 

[7399ps]

I am a schedule c sole proprietor. I pay rent to myself. Typically in cash

[VolvoGirl]

Schedule C is a disregarded entity.  It is the same as you.   It is personally yours.   I don’t think you can pay yourself rent.  Then you would need to report the rent on Schedule E for Rental income.   So it would be a wash.   It’s probably like paying yourself.   You cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.

[AnnetteB6 · Accepted solution]

You cannot deduct the 'rent' that you pay, but if the shed meets the qualifications to be a home office, then you could deduct the separate utility bills for the shed.  To deduct the full amount of the bills, the shed would need to be 100% used for your business.

Take a look at the following TurboTax article to learn more about what qualifies as a home office:

The Home Office Deduction

@7399ps 
 

[7399ps]

Thank you so much. I appreciate the response!

[7399ps]

Thank you very much!