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    martymartinez's Avatar
    martymartinez Posts: 6, Reputation: 1
    New Member
     
    #1

    May 16, 2014, 02:47 PM
    State Contractors License
    Hi everyone, my wife and I are going to be moving. We have two choices we've been approved for, a 1 Bedroom and a 2 Bedroom. I am going to be starting up a company and wondered if having the extra bedroom as an 'office' is a deductable expense from taxes. I live and am moving within California.

    Thank you
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    May 16, 2014, 03:40 PM
    Using a portion of your home as an office may be deductible under certain circumstances. But frankly I wouldn't bother. The benefit you gain is small and the risk of an audit is great.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    May 16, 2014, 06:31 PM
    Scott,

    I disagree. If in fact the extra room is used as a home office, it is a legitimate tax deduction and should be pursued.

    However, the OP must use the extra room exclusively as a home office. The room cannot be used as a spare bedroom, or a play room, or an entertainment center in addition to being an office.

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