Does using half of a room for Business, qualify me to deduct certain business expenses for business use of my home, assuming I meet all the other conditions? Again, the use for business is not the entire room but half of the room.
Thanks in advance for your help.
It is allowed. However, this half of the room must be used exclusively for that particular business.
Carried to an extreme, I've wondered how a vertical allocation of regular and exclusive business-use space would go over in an audit. For example, suppose you have a large desk, computer rack-mount cabinet, or some other counter-height cabinet dedicated to business use, but above it you have wall-mount shelving with personal-use items thereon.
While the allocation of OIH (office in home) expenses on a cubic-foot basis might be negligible, the tax treatment of certain listed property is affected by whether it is used exclusively at a place of business.
-Mark Bole
Not sure how to handle this case. Generally, since allocation is done by square area, it is assumed that the entire volume from surface to ceiling is used for business, so I'd say don't do this.
For example, a personal computer used for business in a home office is assumed to be used exclusively for business, and therefore you need not worry about labeling it Listed Property on the depreciation form.
It can also be done by counting rooms, so I see no reason not to allow cubic volume.
Seth
Not necessarily. If the personal computer is a laptop, it could be used in the office area, but it could also be moved outside the office area and used for personal reasons. I supposed one could do this with a desktop as well, though it would be a pain.
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