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  1. #1
    AD1985 is offline Junior Member
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    What proof of rental expenses do I need to claim home office deduction?

    What is the name of your state (only U.S. law)? California

    My landlord is a condo owner who asks me for rent informally. I work from home so I will be claiming a home office deduction. What I want to know is the following:

    We don't have a rental agreement so is that a problem?

    My landlord said if I want he can give me a written receipt for collection of rents each month. Nothing overly complex. Is this good enough or a potentially serious problem? I am thinking of printing out some receipts worded to the effect of "Payment of $XXX in rents for period of August 1 to August 30, 2008, from AD1985 to Landlord"

    Thanks
  2. #2
    LdiJ is offline Senior Member
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    Quote Originally Posted by AD1985 View Post
    What is the name of your state (only U.S. law)? California

    My landlord is a condo owner who asks me for rent informally. I work from home so I will be claiming a home office deduction. What I want to know is the following:

    We don't have a rental agreement so is that a problem?

    My landlord said if I want he can give me a written receipt for collection of rents each month. Nothing overly complex. Is this good enough or a potentially serious problem? I am thinking of printing out some receipts worded to the effect of "Payment of $XXX in rents for period of August 1 to August 30, 2008, from AD1985 to Landlord"

    Thanks
    Please explain your rental situation clearly. The above is too vague to give you an answer.
  3. #3
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    response

    Firs,t are you sure that you can even run a home based from your apartment? Most places would not allow this.

    You should be getting a receipt anyway.
  4. #4
    LdiJ is offline Senior Member
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    Quote Originally Posted by farmgirl_48732 View Post
    Firs,t are you sure that you can even run a home based from your apartment? Most places would not allow this.

    You should be getting a receipt anyway.
    There are all kinds of home based businesses that would not violate a lease.
  5. #5
    AD1985 is offline Junior Member
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    If there is a lease it's a verbal month to month agreement. Otherwise I just give him a check for my rental payment at the end of every month. Yes I'm sure I qualify for the home office deduction, I just need to make sure that the book keeping is sufficient in case the IRS wants proof of my rental expenses.
  6. #6
    LdiJ is offline Senior Member
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    Quote Originally Posted by AD1985 View Post
    If there is a lease it's a verbal month to month agreement. Otherwise I just give him a check for my rental payment at the end of every month. Yes I'm sure I qualify for the home office deduction, I just need to make sure that the book keeping is sufficient in case the IRS wants proof of my rental expenses.
    Look, you may want to get a consult with a local tax professional, since you don't want to give us the details we need to advise you. The exact details matter.

    The first detail that matters is who exactly, is "him". Is it a house that he owns, and you are his girlfriend, or is it an apartment that a family member owns or what?

    See what I mean by details? They honestly matter.
  7. #7
    tranquility is offline Senior Member
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    It would be unusual, but the OP could give a 1099-misc for the portion of the rent which is for office space for her business. That would probably satisfy the IRS.
  8. #8
    AD1985 is offline Junior Member
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    I don't know what details you guys are looking for. From what you asked, he is not a relation of any sort, just a guy renting a room to me (a landlord). In this case, for tax purposes, is it still ok to have no lease agreement if I claim a deduction on part of my rents?
  9. #9
    Snipes5 is offline Senior Member
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    Does the "guy" claim the income on his taxes? If not, the IRS could have some fun with him later.

    Snipes

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