We own a fashion jewelry business in Texas. The inventory of business is stored in an apartment we live (rented). Can I deduct the apartment rent on my business return?

[Pete3]

We operate the fashion jewelry business in Texas. We live an apartment and all of the inventory of the business is stored in the apartment. We do not own a shop and do our business from apartment. Can we deduct the home office expenses (such as office space, utilities) incurred to operate the business?

[DS30 · Accepted solution]

Yes. But in order for you to claim a home office deduction (including storage of your inventory), the area has to be used 100% exclusively for business. So if you store inventory in a closet or spare bedroom, you need to use if exclusively for business storage to be able to claim the home office deduction.

Please click Self-employed - Home Office Deduction for more information.

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