Home office deduction

4 replies
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community:

I work a W-2 as my primary gig AND have a 1099 side hustle. I use a dedicated room as my studio for the 1099. Am I able to use a home office deduction if it’s NOT for my primary employment?

Thanks for any direction/feedback

Anonymous_

Level 15

See https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv

Just Kidding Author

Level 2

Does the home office exemption apply if I am a (side hustle) sole proprietor? I have been told I need to be an LLC and unincorporated in order to take advantage of this tax exemption.

Mike9241

Level 15

if I am a (side hustle) sole proprietor

I have been told I need to be an LLC and unincorporated in order to take advantage of this tax exemption.

LLC - not required

unincorporated - yes

the home office deduction

Be self-employed (sole proprietor) or a partner who works from home.
Meet the eligibility requirements described below.
Have self-employment income.
Have a designated work area that is used exclusively for work.
Use the space regularly.
Not have access to another office space.
Have a work area that is required for your self-employment work.

Employees are not eligible to take the deduction

Mike9241

rjs

Level 15

Yes. If the room is used regularly and exclusively for your "side hustle" you can claim the home office as a business expense when you report the business income. It doesn't matter that it's not your primary job.