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I am a self employed freelancer, and received several 1099-NEC from my clients. I live and work from my grandparents home (for free), and also care for them (for free), and was wondering if this would be eligible for any deduction?

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    Wondering if what would be a deduction? It doesn't sound like you have any expenses to deduct...
    – D Stanley
    Mar 15, 2021 at 17:29

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You can only deduct expenses that you actually pay. If you are not paying anything to rent the space, you cannot deduct it.

There is a home office deduction, but since you do not own or rent the home in question, you cannot take the deduction.

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  • Thank you! Would there be any tax benefit to me if my grandparents pay me (e.g. $500/m) for caring for them, and then I would pay them (e.g. $500/m) for rent? Or will that not affect anything?
    – harvey
    Mar 15, 2021 at 18:56
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    @harvey Probably not, for two reasons: First, if they are paying you to care for them, you are supposed to declare that as income. Second, you also live there, so only a portion of the $500/rent might be eligible for the home office deduction, as you cannot deduct the full amount of your home’s rent, but only the portion that is exclusively used for business. There are more rules that make the home office deduction very tricky. Your best bet, in my opinion, is to just enjoy your rent-free living situation, and forget the deduction.
    – Ben Miller
    Mar 15, 2021 at 19:03

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