Turbo Tax Home and Business 2022

[thetat]

We have a dog grooming shop/office which we enter as 12.5% of our home. We also pet sit which uses 100% of our home and yard. What is the best way to enter income, deductions, and depreciation for this situation?  Thanks

[AnnetteB6 · Accepted solution]

If all of your income is reported on a single Schedule C for both the dog grooming and pet sitting, it would be best to stick with the 12.5% of your home space being used as a qualified home office if that space is exclusively and regularly used for your business.  

If you want to keep the grooming and pet sitting separated as two different businesses, I would not advise you to claim any home office space for the pet sitting unless you have a dedicated space that is used for that business (regularly and exclusively used only for that business).  

There are provisions in the home office rules that allow for child day cares to claim a larger percentage of their home as a qualified home office and use an exception to the exclusive use rule, but a pet sitting business would not be allowed to claim this.  The business must meet licensing requirements to be a care center for children or adults.

To learn more, take a look at this TurboTax article:

The Home Office Deduction

[thetat]

Thank you for the info and I will taking a good look at the home office deduction link you provided.