Home Business expenses w/no name on deed

[Jesse]

Wisconsin allows for registered domestic partners for opposite as well as same sex partners. I'm not sure if that has any bearing on this or not?

Have a couple who is registered domestic partners with one (her) having a home based business. The house however is in his name only. They have done major improvements together for the business area of the home with him paying for some bills and her paying for some bills. If her name is not on the deed or the mortgage can she take deductions for any of the costs for home improvements, mortgage interest, or property taxes jointly paid? That just she paid? Or none because her name is not on the deed or mortgage?

What about utilities or any other expenses that she pays? Or that they jointly pay?

My first thought is no deduction for any home improvements, mortgage interest, or property taxes, but for utilities and any other expense only what she actually paid.

Any thoughts?

[Gary2]

I think your conclusion is correct, as long as there are ways to trace the payments to the business (in whole or part). But here are some thoughts:

Is there any way to view some of her expenses as rent for the business? Of course, he would have to declare that as income, determine whether or not it's a for-profit rental, and they'd need to separate the business rent from the personal expense sharing.

Another thought is to form a business partnership to own the business, with all the extra paperwork involved.

On the other hand, if they're considering marriage in the near future, they may be better off not complicating things now.

[Jesse]

Thanks Gary!