Office in Home Deduction - Requirements:
Courtesy of Parsons & Germer CPAs, LLP

Imagemap
Office in HomeExclusive UseSeparately identifiable spaceNeed not be partitionedExceptionsStorage of inventorySell products at wholesale or retailONLY fixed business locationUsed on regular basisSeparately indentified suitable spaceDaycare FacilityRegular UseConsistent basisNot occasional or incidentalCase by case basisTrade / Business UseProfit-seeking activityConnection to business activityPrincipal Place of BusinessConsider if Multiple LocationsRelative importance of activities at eac ...Amount of time spent at each locationWhere admin & mgmt activities are conduc ...Use MUST be exclusive and regular for ad ...Billing customers, clients, or patientsKeeping book and recordsOrdering suppliesSetting up appointmentsForwarding orders or writing reportsMust be ONLY location where substantial  ...ExceptionsService provider conduting admin acvitie ...Non-fixed locations like a car or hotel  ...Occasional and minimal admin done at fix ...Substantial non-admin, non-mgmt oustide  ...Suitable space is available oustide home ...Exceptions if above not metPhysically meet with clients, patients,  ...MUST be substantial and integral to busi ...Separate structure from dwelling unitEmployee RequirementsMUST be for convenience of employerMUST NOT rent any part of home to employ ...
hideOffice in Home
hidefull-1Exclusive Use
hideSeparately identifiable space
leafNeed not be partitioned
hideExceptions
hideStorage of inventory
leafSell products at wholesale or retail
leafONLY fixed business location
leafUsed on regular basis
leafSeparately indentified suitable space
leafDaycare Facility
hidefull-2Regular Use
leafConsistent basis
leafNot occasional or incidental
leafCase by case basis
hidefull-3Trade / Business Use
leafProfit-seeking activity
leafConnection to business activity
hidefull-4Principal Place of Business
hideConsider if Multiple Locations
leafRelative importance of activities at each loacation
leafAmount of time spent at each location
leafWhere admin & mgmt activities are conducted is critical (see below)
hideUse MUST be exclusive and regular for admin or mgmt activities
leafBilling customers, clients, or patients
leafKeeping book and records
leafOrdering supplies
leafSetting up appointments
leafForwarding orders or writing reports
hideMust be ONLY location where substantial admin & mgmt activities are conducted
hideExceptions
leafService provider conduting admin acvities at other locations
leafNon-fixed locations like a car or hotel room
leafOccasional and minimal admin done at fixed location oustide home
leafSubstantial non-admin, non-mgmt oustide home
leafSuitable space is available oustide home, but choose home
hideExceptions if above not metInternal Link
hidePhysically meet with clients, patients, or customers
leafMUST be substantial and integral to business
leafSeparate structure from dwelling unit
hidemessagebox_warningEmployee Requirements
leafMUST be for convenience of employer
leafMUST NOT rent any part of home to employer