Deduct 100% of Home if live somewhere else

[fabologist]

I have a home business, and it is growing, so I was thinking of maybe renting and living there using 100% of my mortgaged home as the business.

I guess I could rent and write off 100% of it, but I would think writing off the mortgage would be worth more.

I use Simplified deductions.

Is this possible? I feel this would be a huge red flag, though I am OK with any audit, just it can be time-consuming, which means less time running a business.

[Carl]

This has nothing to do with taxes, but:

so I was thinking of maybe renting and living there using 100% of my mortgaged home as the business.

That would most likely be in direct violation of your mortgage agreement. It would definitely be in 100% violation of your homeowner's insurance policy. If for any reason you had an insurance claim, the insurance company would refuse the payout because the home was not being used for it's insured purpose as your primary residence. So if you have a major loss such as fire, flood, hurricane, tornado, etc., you would "in effect" be uninsured. Then the mortgage lender will foreclose on the property and you lose everything, including the business.

Additionally, if there are zoning laws in your locale and your property isn't zoned for business use, your problems will be further compounded. Please seek legal advice from a professional in your local area - and not just a tax professional either.

[fabologist]

That was a waste of my time, and yours. I was asking for tax purposes.

I should add why it was a waste.

My mortgage, I am only obligated to live in the home the first year, been here almost 2 years.

I have an online business, zoning has nothing to do with that.

My insurance, when I signed up, it asked if I run a home business, so that is included in my insurance.

[Critter · Accepted solution]

Ok ... short answer to your post ... yes you can take the mortgage interest, RE taxes, insurance and the utilities in full against the business income if you convert the entire home to business use ... you should already have been doing this for the partial use. The rent/other expenses on a personal home are not deductible anywhere as they are personal.

[fabologist]

Thanks Critter for the thoughtful reply and your time.