I have a client that has two homes and has offices in both homes. One home is used for business about 6 weeks per year. The client wants to write off both offices. It is my understanding that this could be done, however, the income would need to be apportioned between the two offices indicating the amounts earned at each location. In essence, he would not be receiving a portion of the write off available from main home office while writing off second home office. Does anyone have a different interpretation of this?
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regular use
Do you thiink the house in which he only works 6 weeks a year can pass the regular use test? -
My interpretation is that if you prorate the income and expenses by usage, you can do it.
Is there an economic gain over just using their primary residence / office?Comment
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If the house that is used only 6 weeks of the year meets the regular and exclusive use test because the business is seasonal etc. You will also need to multiply the expenses by 6/52. Once you apportion the income is it even worth it?Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Thank you so much for your replies and wisdom. I do believe it would pass the use test, but doubt it will be financially beneficial to do so.Comment
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