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New Member
posted Feb 10, 2021 3:51:00 PM

Can my unfinished basement be claimed as a Home Office? I have used it as my walk-in retail store for years but never claimed Home Office since it is unfinished.

My house is 1760 sqft. My unfinished basement is 1800 sqft (including cold storage). I use 1300 sqft of the basement as my store. It is my full time job for many years. I allow walk-in traffic. It has its own walkway and entrance. I had heard in the past that unfinished can't be claimed since it's not "actual" square footage of the residence, but I recently read a comment that it could be claimed. It was just a comment, so I would like to know for sure either way. Thank you.

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1 Best answer
Level 15
Feb 10, 2021 4:08:12 PM

Yes. Your unfinished basement can be used as a home office if it is used regularly and exclusively for your business. 

4 Replies
Level 15
Feb 10, 2021 4:08:12 PM

Yes. Your unfinished basement can be used as a home office if it is used regularly and exclusively for your business. 

New Member
Feb 10, 2021 4:09:22 PM

Excellent, thank you very much for the reply

New Member
Dec 3, 2024 12:06:25 PM

This is helpful thank you! If the unfinished basement does not contribute to square footage of the home, how does this impact your:

- percent of home used for home office (0/sq foot of house) for income tax

- percent of home used as part of business for property tax

 

Thank you!

 

Level 15
Dec 3, 2024 12:22:26 PM

Either include it in the square footage or opt for the simplified calculation. 

https://www.irs.gov/businesses/small-businesses-self-employed/simplified-option-for-home-office-deduction