I am actor. I use portion of my home for taping, rehearsal, writing and script preparation. The money I earn is from on location filming. How do i determine percentage of income that relates to home office?
The home office deduction calculates the % of your home that you use for business so you can calculate the square footage of your office as a percentage of the total square footage of your home. TurboTax will help you to complete that calculation. See more information here:
What rooms did you use to rehearse in and use this dimension. What rooms did you write and prepare scripts in and use this dimension. What rooms did you tape and edit your post production films in and use this dimension? I live in an area that gets cold and the areas that I do work in changes due to being too cold to heat properly. Do you have a work shop to build props for? Last question is: is this area used exclusively for that purpose? I know that open concept living is big, but seclusion for the type of work you are doing is needed, so setting up these areas in your home is necessary. Sound proofing areas is necessary. Lighting for those areas is necessary. Creating areas with sets is necessary. Having storage for props and sets is necessary. Think of all the different Holidays we have. Are not you not going to reflect those changes in your sets and props? We are empty nesters and turning bedrooms into those rooms and leaving them that way. When the kids, grandkids and friends come by, well blow-up beds can be pulled out of storage. Futons and murphy beds can be incorporated into interview sets, but the few days a year relatives come by doesn't change the intended use of the rooms. And often the rooms are used for that purpose while guests are here. A great excuse to teach what goes into what you are doing. The rooms remain the same. The business use of those rooms never gets changed.