Self employment for interior design business

[mbarneich]

My wife has a fairly new interior design business that is growing.  We keep track of mileage, and any tangible business expenses such as her computer, phone, supplies, etc.  The program did not allow us to use our home as a home office deduction last year and we weren’t sure why as our home is where she does all of her business unless she is at a client’s home or shopping for supplies. Also trying to avoid the high self employment tax by having write offs. Is there anything we aren’t thinking of?

[David_EA]

Hello mbarneich! I'm an Enrolled Agent with TurboTax Live. 

Do I qualify for the home office tax deduction?

Generally speaking, to qualify for the home office deduction, you must meet one of these criteria:

• Exclusive and regular use: You must use a portion of your house, apartment, condominium, mobile home, boat or similar structure for your business on a regular basis. This also includes structures on your property, such as an unattached studio, barn, greenhouse or garage. It doesn't include any part of a taxpayer's property used exclusively as a hotel, motel, inn, or similar business.
• Principal place of business: Your home office must be either the principal location of your business or a place where you regularly meet with customers or clients. Some exceptions to this rule include day care and storage facilities.

Please click this link for more information on the Home Office Deduction topic: https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv

Here is a link for more information on deductions: https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income...

[mbarneich]

Ok so I answered all of those questions during your return that way but it still did not allow a home office deduction. Anyways, Is there anything you think I could be missing for this type of business that could help out with deductions?

[David_EA]

The second link I provided in the original post HERE  can provide more info and ideas on how to get the most expenses/deductions.