Home Office Freelance web developer sharing Home Office with 100% virtual employment, how to split office deduction?

[wlewis4]

I a freelance web developer working out of a 72 sqft home office.  I began 100% full-time employment late in the year which I also do in that 72 sqft home office space.  How do I split the home office use deduction when it comes to utilities and other home maintenance expenses? 

[ColeenD3]

You would compare the square footage of your home office to the total square footage of your home. If it is 10%, for example, you would include 10% of expenses. All you need to do is enter the square footage of each and TurboTax will do the math for you.

[wlewis4]

My concern is the "exclusively use of the space for home business"  which is my freelance web developer business, or is the virtual W-2 employment considered a second business?

[JohnB5677 · Accepted solution]

I want to be sure I understand.

• You are a freelance web developer (self-employed)
• You also do web development for a company that issues you a W-2.
• You want to know how to allocate your office and resources.

You cannot claim work related expenses for the W-2 income.

Your office must be used "Exclusively and regularly as your principal place of business for your trade or business."

At this point it does not sound like you can claim that.  You must find a way to comply with this restriction to be able to deduct the home office.  Perhaps use a different area of your home to do work for your W-2 income.

[wlewis4]

Thank you.  You got my situation on the nose.  I will only claim a home office expense up to the time I took on the W-2 employment which was the start of November.  That is, 10 months exclusive freelance.