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posted Oct 25, 2023 7:24:59 AM

Began an LLC

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

0 2 387
2 Replies
Employee Tax Expert
Oct 25, 2023 9:02:41 AM

@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:

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

Level 5
Oct 25, 2023 9:04:32 AM

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