Home office deduction for use in a passive activity such as a second home

Posted by Vickie Seley on February 25, 2007, 5:00 am

Please log in for more thread options

Can we use the federal home office deduction for passive
activities such as management related to a rental property?

After my husband passed away in 2002, I began to manage our
rental property from the home office. I store all the
related records in that home office. I set up a second
telephone line and printer and computer and all that.

I read the tax pages for home office deductions at the IRS
http://www.irs.gov/newsroom/article/0,,id=163079,00.html

After reading the IRS page, I am confused whether the home
office deduction applies to me. The reason is two fold.

1. Does management of a passive activity qualify for a home
office?

2. Does work for my employer in that office reduce my
benefit?

More details are that I use the home office exclusively for
two things. I use it BOTH for management and storage of
records of my passive activity and for working from home as
I now am forced to work now that my husband is gone.

The IRS web page talks about how the deduction applies "at
the convenience" of the employer but it says nothing about
passive activities.

Do Passive Activities Apply to the Home Office Deduction?

Thanks in advance for any help.
Vickie

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill Brown on February 26, 2007, 12:54 am

Please log in for more thread options

> Do Passive Activities Apply to the Home Office Deduction?

Section 212 activities, such as real estate rental, do not
get a home office deduction. Home office deductions are only
available for trade or business activities.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>