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hollermark
New Member

Do I claim 100% of my work done in my home office if I am there 70% and in people's homes where I do sales presentation 30%?

 
2 Replies
VictoriaD75
Expert Alumni

Do I claim 100% of my work done in my home office if I am there 70% and in people's homes where I do sales presentation 30%?

Yes. A deduction is allowed if the home office is used on a regular basis and exclusively as the self-employed taxpayer's principal place of business. To meet the exclusive use test, a specific area of the home must be used only for the trade or business. As long as your home is the principal place of business, you are fine. Traveling to different clients is allowed.

 

The Home Office Deduction

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Carl
Level 15

Do I claim 100% of my work done in my home office if I am there 70% and in people's homes where I do sales presentation 30%?

There are actually two questions related to home office use, and only one of them should *NOT* be 100%.

 - Percentage of time the home office is used to conduct business:  This "must" be 100%. You may only be in that home office for 1 hour a week. But for that one hour you are conducting business, and nothing else. So if that home office is used for the kids to play video games, do their homework, or anything else not directly related to the business, this will be less than 100% and you will *not* qualify to take the home office deduction.

 - Percentage of business conducted in the home office : This will practically never be 100% unless all of your customers come to you. For example, if you do something like lawn care, there's no way you conduct 100% of your business in your home office. However, if you have an in-home hair salon where clients come to you to get their hair done, then it's perfectly feasable that you contect 100% of your business in the home office.

 

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