We don't qualify for a home office but our business occupies the entire garage. how do we treat that ?

[doug16214]

Our small business occupies our entire garage.  Do we treat it as an office ?

[Mike9241]

if it's not used for personal purposes it would not be a home office. but like a storefront that you own. the cost would be depreciable. 39 year life for the building.

[JohnB5677]

You can set up a Schedule E, and rent the garage from your home.  You would pay a monthly rent. 

You would be limited on deductions you could use for your home to items specifically used in the garage.  Some Real Estate taxes, Mortgage interest, and outside home maintenance could be included. 

[SweetieJean]

Who exactly owns "our" business?  It might require a Partnership tax return. But see:

Election for Married Couples Unincorporated Businesses | Internal Revenue Service (irs.gov)