Right now, I rent a 4/4 with 3 roommates. One of my roommates is leaving at the end of this rent period. The rent for us is $225/month/room. If I rent both my current room and a second room (the room being vacated by the roommate moving out) can I write off the full rent amount for the second bedroom if I use it (as I plan to) solely for business use (web Dev)

Breakdown: 1 room at $225/month personal (not written off) 1 room at $225/month business (written off?)

Each room is roughly 144 sq ft ( thus the new simple write off of $5 sq/ft isn't that attractive). Ideally I'd like to write off the full rent amount of the room I'm renting solely for business. Is that feasible?

  • Are there any common use rooms (kitchen, etc)? That may skew what the TaxMan considers a reasonable way to split the deduction... – DJohnM Mar 7 '15 at 21:08
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    @User58220 - exactly - The $900 rent is for more than 4 bedrooms, therefore, $225, even though OP doesn't need "more kitchen," he'd actually be paying for half. That has to be taken into account. – JTP - Apologise to Monica Mar 7 '15 at 21:16
  • The IRS has several good web pages on the topic of home offices. If you're a contractor rather than on salary, you maybe one of the few who will actually be able to justify this. – keshlam Mar 7 '15 at 22:11
  • While I'm not a tax accountant, I would think that in this case you are simply paying $225/month to rent office space, and if you list it as that on your Schedule C (and get receipts showing it, or pay office and room with separate checks), you shouldn't have a problem. Assuming, of course, that nothing else in your return raises red flags. – jamesqf Mar 8 '15 at 4:41
  • I agree with @jamesqf, however, the postal address of your office and home will be the same so you are essentially do a home office and I have been told repeatedly that is huge red flag that causes a large number of audits. Do it at your own risk. – ssaltman Mar 9 '15 at 14:44

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