Can a husband and wife each take the home office deduction if they operate separate businesses in separate locations of a home?

by William R. Lazor, CPA | Mar 09, 2018
askacpaicon

If two separate businesses are being run from two separate 300-plus square foot offices in the same home by husband and wife, can they each claim the maximum business use of home deduction (simplified method, $1,500) on their married filing jointly return?

If both the husband and the wife each have an area in the home that is used exclusively and on a regular basis for the conduct of their own business, then each can claim the deduction. If, however, the office in home space is shared by either of them, then neither gets the deduction since the shared use means that the space fails the exclusive-use test by one of the businesses.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: William R. Lazor, CPA, is a partner/shareholder with Kronick Kalada Berdy & Company PC in Kingston, Pa.

Disclaimer
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Ask a CPA

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.

Search