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Self employed, provide services for clients in an area of my home in the United States of America.

Most of that area is not exclusively used, but there are storage areas as well as closets that are exclusively used for storage of items used during the course of the business (items are not comsumed or sold, just used and then replaced to their storage location)

EDIT: For example I repair items in a non-exclusive space in my house, but the tools used for such repairs are stored in exclusively for business use closets and shelves adjoining the non-exclusive space

Can I take home office deduction for the exclusive areas ?

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  • The items in storage must be, at least, samples of items for sale. That's it, that's the logic of the IRS. irs.gov/publications/p587 . Scroll to to storage-of-inventory-or-product-samples.
    – S Spring
    Jan 16, 2022 at 20:48

1 Answer 1

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Technically you can. You'll need to satisfy the "exclusive use" requirements (and for storage there are some specific details). See pub 587 for details. In any case a "separately identifiable" space is a requirement you'd need to meet.

Whether it is a good idea or not is a separate question.

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  • But why not note the details of storage in IRS Pub 587 and correctly answer the question ?
    – S Spring
    Jan 16, 2022 at 22:48
  • Because copy-pasting pub 587 here is not what this site is for.
    – littleadv
    Jan 16, 2022 at 23:56
  • @littleadv I added an edit to the original question clarifying what the storage area is used for Jan 17, 2022 at 0:27
  • @ChaimGeretz I doubt a "shelf" would count as an exclusive space. Closet maybe. But consider this - how much of a tax benefit are you expecting here, compared to the extra costs of tax preparation and a potential audit?
    – littleadv
    Jan 17, 2022 at 0:40

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