My home office, where I conduct 100% of my business, also has a TV and treadmill that I use at night.

[Anonymous]

My home office, where I conduct 100% of my business, also has a TV and treadmill that I use at night.  Am I allowed to take a home office deduction because of the treadmill?

[JohnB5677 · Accepted solution]

I agree with @Bsch4477.  In the interest of caution, I would remove the equipment.

Here are some details about this deduction to help taxpayers determine if they can claim a home office:

• Employees are not eligible to claim the home office deduction.
•  The home office deduction is available to both homeowners and renters.
• There are certain expenses taxpayers can deduct. These may include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
• Taxpayers must meet specific requirements to claim home expenses as a deduction. Even then, the deductible amount of these types of expenses may be limited.
• The term "home" for purposes of this deduction:
  • Includes a house, apartment, condominium, mobile home, boat or similar property.
  • Also includes structures on the property. These are places like an unattached garage, studio, barn or greenhouse.
  • Doesn't include any part of the taxpayer's property used exclusively as a hotel, motel, inn or similar business.
• Generally, there are two basic requirements for the taxpayer's home to qualify as a deduction:
  • There generally must be exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.
  • The home must generally be the taxpayer's principal place of business.

Please review:   How small business owners can deduct their home office from their taxes.