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My house has an "In-Law" suite that I plan to use for an exclusive self-employed home office for tax deduction purposes. It contains a main room, a bathroom, a kitchenette, and a walk-in closet. I plan to include the bathroom and kitchenette as part of the office, as I will only use them while working; but I would like to exclude the walk-in closet so I can use it for non-work related storage.

The catch? Access.

Here is a diagram of the suite. Office area is in blue, excluded area (closet) is in red:

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Question:

Will it be an issue with the IRS that the closet for general non-work use, cannot be accessed without treading across space dedicated to exclusive self-employment home office use? The closet will be rarely accessed, as it is just for storage for things we don't need to access very often. Probably will only need to access it once a month or so.

If it is an issue, what are some ways I could address it?

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I am not a tax attorney or an accountant. With that disclaimer out of the way, I don’t think the fact that you have to walk through your office to get to your closet would prevent you from taking the home office deduction for that main room.

I think your bigger hurdles are the bathroom, kitchenette, and the fact that you also use the office for work as an employee.

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  • Good point about my other post, but my solution is that I am using a separate space in my house to do my employee work. Not the most convenient, but worth it if I can get the full deduction.
    – James Dunn
    Commented Apr 11, 2022 at 17:00

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