What are the two exceptions to the exclusive-use test that allow for deductions when there is personal use of the business portion of a home?
Understand the Problem
The question is asking about the exceptions to the exclusive-use test when deducting expenses for the business use of a home. Specifically, it concerns situations where personal use doesn't completely disqualify the deduction.
Answer
The two exceptions are for storing inventory/samples and operating a qualified day care facility.
The two exceptions to the exclusive-use test are:
- Using part of your home to store inventory or product samples.
- Operating a qualified day care facility in your home.
Answer for screen readers
The two exceptions to the exclusive-use test are:
- Using part of your home to store inventory or product samples.
- Operating a qualified day care facility in your home.
More Information
These exceptions allow taxpayers to deduct expenses for the business use of their home, even if the area is not used exclusively for business.
Tips
It is important to note that even with these exceptions, specific requirements must be met to qualify for the home office deduction.
Sources
- Taxes and Audits - anthemeap.com
- A Guide to Tax Deductions for Home-Based Business | CO - uschamber.com
- Tax Deduction for Using a Home Office - Nolo - nolo.com
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