Office in Home & Mileage Deduction

[death&taxes]

Many years in the business working for someone else. In 2010 season I started home based tax business. Just looking for thoughts on possible deductions for my own return.

1. Family room converted to office 100% business use for 3 months (all furniture & TV removed except for couch and table which served as my waiting area.) added back office furniture and file cabinets. This room has a outside entrance. It is my only business location. So, can I take 3/12 prorated OIH expenses for my regular and exclusive use?

2. I have some mileage expense. If I do not take an OIH deduction, can I take the mileage deduction from my home to post office or other locations then mileage back to the office or must the first and last stop be considered commuting?

Thanks for your help!

[solomon]

Many years in the business working for someone else. In 2010 season I started home based tax business. Just looking for thoughts on possible deductions for my own return.

1. Family room converted to office 100% business use for 3 months (all furniture & TV removed except for couch and table which served as my waiting area.) added back office furniture and file cabinets. This room has a outside entrance. It is my only business location. So, can I take 3/12 prorated OIH expenses for my regular and exclusive use?

2. I have some mileage expense. If I do not take an OIH deduction, can I take the mileage deduction from my home to post office or other locations then mileage back to the office or must the first and last stop be considered commuting?

Thanks for your help!

1. Yes

2. Yes - See Revenue Ruling 99-7

[death&taxes]

What if no OIH Deduction Claimed?

Really appreciate the Rev. Rul. cite. So what if I decide not to deduct OIH. (My state taxes profit from sale of part of home, used it for business, if it has EVER been used for business and I know that if still used for business I'd also have to pay IRS tax on OIH profit and depreciation recapture) I've been in my home for 26 years and have a tidy profit that I really don't want to pay the tax on)

With no OIH deduction, would you deduct all business related mileage from home?

We're not talking about a lot of mileage - probably less than 500 miles. Just looking for legit deductions to reduce tax and SE tax...

[solomon]

With no OIH deduction, would you deduct all business related mileage from home?

If it is principal place of business, then yes.

[appelman]

No fair answering a multiple choice question with "yes."

1. Yes

2. Yes - See Revenue Ruling 99-7

At least that's what I tell my clients when they do that to me. I deduce you mean that he can deduct all the mileage whether or not he claims OIH, so long as home is his principal place of business. And I agree.

[solomon]

At least that's what I tell my clients when they do that to me. I deduce you mean that he can deduct all the mileage whether or not he claims OIH, so long as home is his principal place of business. And I agree.

Yes. D&T deduced that as well. I did think about the lack of clarity, but since D&T made the correct inference I let it pass. Actually, now that I think about it, that is why I cited the Revenue Ruling which addresses that - as I recall - so really number two was not multiple choice.