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emilylouise-walk
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

 
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MichaelDC
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Very nice catch. You should set up 2 separate offices. You can allocate the SPACE by any reasonable method (income earned or time spent). So, for example, if you have a 200 sq ft office, the Self-Employed office can be 150 sf and the employee home office can be 50 sf or vice versa.

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6 Replies
MichaelDC
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Did you have a profit in this business?
emilylouise-walk
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Yes, it's IT contract work that I do in addition to my regular Job. Both are done from the same home office, for a total of 40 hours per week.
MichaelDC
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Thanks. It's probably to do with answering a question incorrectly. As hinted in my comment question, the home office can't be taken unless you have a net profit after expenses and it can't get you a loss in the business.
emilylouise-walk
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

I think the problem is that TurboTax is asking me if I use the home office "exclusively for this business" - and I have to say "NO", since there are 2 businesses technically sharing that home office area.  I do 2 hours per day for one, and 6 hours per day for the other.
MichaelDC
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Converting the above comment to an answer for others' benefit. Please let me know if you need anything else here. Thanks.
MichaelDC
New Member

Why does my Self-Employed income not qualify for any home-office deduction if I worked 99% of those hours from that home office?

Very nice catch. You should set up 2 separate offices. You can allocate the SPACE by any reasonable method (income earned or time spent). So, for example, if you have a 200 sq ft office, the Self-Employed office can be 150 sf and the employee home office can be 50 sf or vice versa.
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