Began an LLC

Forum|Forum|2 years ago
October 25, 2023
2 replies
16 views

HI ,

I began a private practice LLC in April of 2023. I work from my home. I also have renters in a condo upstairs. What can I claim for a tax deduction now that I have my private practice in the house?

Thank-you,

Daphne

Daphne Nayar, LICSW

SwapnaM

Employee Tax Expert

@dnayar Thanks for the question!! Since you have the Private Practice at your home, you are eligible to claim Home office deduction. Housing-related expenses such as mortgage interest, rent, utilities, repairs, and depreciation for the portion of your home that you use to run your business are allowable expenses under the home office deduction.

You may be able to claim the home office deduction if your office is:

Used regularly and exclusively for your business, and
Is your principal place of business (both conditions must apply).

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/take-home-office-deduction/L8nsQkp1O_US_en_US?uid=lo5xub5z

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VincentL12345

Level 5

You may be able to claim the home office deduction. Generally speaking, to qualify for the home office deduction, you must meet one of these criteria:

Exclusive and regular use: You must use a portion of your house, apartment, condominium, mobile home, boat or similar structure for your business on a regular basis. This also includes structures on your property, such as an unattached studio, barn, greenhouse or garage. It doesn't include any part of a taxpayer's property used exclusively as a hotel, motel, inn, or similar business.
Principal place of business: Your home office must be either the principal location of your business or a place where you regularly meet with customers or clients. Some exceptions to this rule include day care and storage facilities.

The following IRS publications and forms may be of some help to you in your business:

Publication

463 Travel, Gift, and Car Expenses
523 Selling Your Home
534 Depreciating Property Placed in Service Before 1987
535 Business Expenses
544 Sales and Other Dispositions of Assets
547 Casualties, Disasters, and Thefts
551 Basis of Assets
925 Passive Activity and At-Risk Rules
946 How To Depreciate Property

Form (and Instructions)

461 Excess Business Loss Limitation
4562 Depreciation and Amortization
5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit
7205 Energy Efficient Commercial Buildings Deduction
8582 Passive Activity Loss Limitations
8960 Net Investment Income Tax—Individuals, Estates, and Trusts
Schedule E (Form 1040) Supplemental Income and Loss