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One home office, two businesses

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jcm55

Junior Member
What is the name of your state? CA

My wife and I have a home office (approx 200 sq. ft.) that we both use. I am a remote employee for a company that's based in another state, and she is self employed. I have read that's it's permissible for a home office to be used by multiple businesses, as long as all of the businesses meet the "regular and exclusive use" requirement, and there is no personal use of the space whatsoever. We meet those requirements, so I'm pretty confident we can take the deduction.

My question is, how to allocate the home office expenses/depreciation between Form 8829 for her business use, and the Employee Home Office Worksheet for my business use? The easiest way I can see is to treat it as if it were two 100 sq. ft. offices. But I don't want the IRS to think that we are both trying to deduct expenses for the same 100 sq. ft. space.

Any suggestions?
 


LdiJ

Senior Member
What is the name of your state? CA

My wife and I have a home office (approx 200 sq. ft.) that we both use. I am a remote employee for a company that's based in another state, and she is self employed. I have read that's it's permissible for a home office to be used by multiple businesses, as long as all of the businesses meet the "regular and exclusive use" requirement, and there is no personal use of the space whatsoever. We meet those requirements, so I'm pretty confident we can take the deduction.

My question is, how to allocate the home office expenses/depreciation between Form 8829 for her business use, and the Employee Home Office Worksheet for my business use? The easiest way I can see is to treat it as if it were two 100 sq. ft. offices. But I don't want the IRS to think that we are both trying to deduct expenses for the same 100 sq. ft. space.

Any suggestions?
That's the logical and sensible way to do it. Believe it or not, the IRS does positive respond to sound logic and common sense.:)
 

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