Home Office......Again!

[Jesse]

This time a little different twist. I have a couple that live together in HIS house. She is an insurance agent and does have an office in the home, but he owns and pays for all of the house/bills/upkeep.

Since she does have an in home office for exclusive use, but no expenses related to the home-office, I'm wondering about deductible mileage from the home?

Also, several days a week she travels to another office - 68 miles roundtrip - (thinking out loud)if she has an office in the home these miles are deductible, no office in home it would be commuting?

Any other thoughts?

[oceanlovin'ea]

Needs to help

with expenses. If she wants to have a deduction for a home office, she should start sharing in paying some of the bills.

But I would think that she should pay electric or some other part of expenses and write the check to the electric company so she would have proof of the payment if needed.

Linda F

[Gretel]

I don't think that not having to pay actual expenses would disqualify this OIH for mileage purposes.

What could disqualify the mileage is the other office. If she has an office available for her general business activity all the miles are commuting expenses.

[Unregistered]

Why can't she have two offices? Would it be any different then having a second job, but you have on job in two places.

There shouldn't be a problem w/not paying expenses if it is a home office it is a home office it's just a free home office.

[Gretel]

Why can't she have two offices? Would it be any different then having a second job, but you have on job in two places.

Because Pub.17 pg. 190 says so. It needs to be your principal place of business. If you have another office, which is your principal place of business, you are out of luck.

[Unregistered]

Home office

Have a client that is a surgeon, his principle place of business is at difference hospitals, but he also has a home office, mainly to do administrative work. (Like billing insurance companys and patients.)

[Jesse]

Any other thoughts?

Sorry, I should have stated as well, this insurance agent is Self Employed w/ all income reported on a 1099MISC.

[OldJack]

If she can claim that the office in her boy friends home meets all qualifications of renting an office she can claim the office except she has no payment that qualifies as a deduction. Sharing ones body in exchange for rent payment is not a deductible expense unless she also recognizes the amount as income from prostitution. If this is her "primary" office she should be able to claim mileage from the office.

[Jesse]

Why do you have to be like that?

Sharing ones body in exchange for rent payment is not a deductible expense unless she also recognizes the amount as income from prostitution.

Maybe it's the cooking and cleaning and companionship rather than her body!