Posted on 03/04/2016 2:24:56 PM PST by enduserindy
The IRS has some pretty clear rules as to a home office deduction. My questions are on decorations. I do not want to use any decoration expenses. I do however want an aquarium in my office and some items like an alligator head, stereo etc. Can anyone tell me if items like these are allowed in my home office?
Will the alligator head be in the aquarium tank? I must know this to look up the appropriate tax code.
Haveing worked out of my home previously, your best bet is to maximize the square footage as it is documentable. I would not itemize decorations. If you want a aquarium, buy one. Don’t try to expense it. Keep your expenses to the necessities required to have the space function. Nothing more.
The more crap you put in there the more you invite an audit.
There is a standard deduction available now so you don’ t have to itemize. I’m a remote worker and never had enough square footage or expenses to meet the % test.
Just google “home office deduction’ and you’ll get all the info.
I wouldn’t use it. Use the square footage % of the house, business use of computer/printer/supplies. Percentage of utilities, taxes, etc.
Unless you are seeing patients in your home office where an aquarium would have a calming effect and is only worthwhile to your business.
I need to add, I’m not a tax attorney, just use a home office deduction for myself and for my son’s business at his house. I am VERY careful on what I deduct and always error on the side of caution.
For my Wife’s home office we have furniture, a desk and file cabinets as scheduled depreciating assets.
The computer(s) are scheduled slightly differently (though I cannot remember the difference).
I can see an aquarium as a deduction if you have clients over on occasion.
We have artwork in our home but have never deducted any of it as we have purchased it personally.
I do remember that you can get a $12.00 deduction for donated underwear if your name is Bill Clinton, though.
It depends on your party affiliation. If you are a Democrat, you can itemize dustbunnies, crayons and gaming equipment. Since you are posting here, you probably cannot itemize alligator heads and fishies. Only Dems can itemize fishy things.
You can put anything in your home office you want since it can be any room in your house. DO NOT start claiming anything except sq footage of the room.
Would those be deductible expenses if you rented an office? I think the answer is yes. If you are deducting a percentage of rent/mortgage, utilities of your home based on square footage, why not do the same with the aquarium? It would be easy to justify especially if you ever have clients gone to your home for business.
Why can a dentist deduct it but not a home office worker?
It will set off the audit alarm bells at the IRS. A home office can be just computer in a spare bedroom, not a place where you meet customers etc.
What IRS reg says that?
Why don’t you just contact the IRS and ask them?
Deducting an aquarium shouldn’t be a problem. It’s no different than taking a deduction for an oriental rug or a desk or installing a picture window in your office. Keep the receipts - that’s the key for all home office deductions.
Good luck in your business venture.
The home office deduction is a trip wire for the IRS.
I would tread lightly.
My home office is a room along the back of my garage. It is about 1/15th of the square feet in my house. One year I made an error on my return, correcting it the next year. Boom! Full blown audit.
The auditor was a nice guy and my books were in order and it all worked out. But it was about 100 hours of pain in the ass.
If your fish tank is worth that...give it a shot.
You might want to read what the IRS says:
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction
Look under part 2 of requirements to claim the deduction. Meeting with clients in your home is right there.
The wisdom of taking this deduction would depend a lot on the overall expense versus the amount of income to the business is generating, and what kind of a business it is. For example, any kind of personal service business such as a financial advisor, or career coach etc. that the business could claim need to create a calm soothing environment so that the clients can think clearly with reduced anxiety, would have no problem selling the IRS on the deductibility of her aquarium in the office. It’s no different than a dentist or a doctor’s office. If it’s lumped in with office furniture and decor know is gonna know it’s an aquarium anyway.
The office has to be exclusively for business. Having an aquarium could invite an argument that it is used personally and then could lose entire deduction.
I have a PS4 and a big screen TV in my room but could never deduct it, but it's fine to be in the room.That was his original question I think.
Since he didn't really say what type of home office it would be I was only thinking of my type that I have here.
I had an aquarium with a rare Japanese fighting fish but there was in incident involving a priceless Samurai pen and, well, I had to write both off. It’s all on tape:
https://www.youtube.com/watch?v=Qbcqg_70i-w
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.