I have a new client who is in sales and lives with her fiancé. They recently purchased a home and each have their own home offices which are separate from each other.
In 2013 she received just W2 income and though at first wanted to take the home office deduction for her office, now she is telling me that her fiancé is taking all the home office deductions against his income - she just wants to deduct the expenses that she had to furnish her office. These include normal office furniture but also rugs, pictures, tables, lamps, and an ottoman (almost $10,000 in "business furnishings") and a $1500 cost of having the office professionally painted.
While I don't doubt that she completely qualifies to take a home office deduction, and I don't have a problem with deductions for the business furniture (desk, chair, lamp, shelving) - I'm having a problem with the rugs, paintings, curtains, etc. and the cost of painting the office when she isn't going to take the actual home office deduction. My point of concern is that these items aren't "ordinary and necessary" for her to do her job - I wouldn't have a problem with them if she was taking the business use of home deduction.
Am I being too conservative in my thought that to take the expenses that I'm questioning she needs to take the home office deduction?
She plans to add income to her return that will be self-employment income and she will meet clients in her office - but that will be for 2014 if that happens at all.
I'm not completing the return for her fiancé - and knowing what his occupation is, I don't believe he qualifies to take the home office deduction but I don't have his information to accurately determine that.
In 2013 she received just W2 income and though at first wanted to take the home office deduction for her office, now she is telling me that her fiancé is taking all the home office deductions against his income - she just wants to deduct the expenses that she had to furnish her office. These include normal office furniture but also rugs, pictures, tables, lamps, and an ottoman (almost $10,000 in "business furnishings") and a $1500 cost of having the office professionally painted.
While I don't doubt that she completely qualifies to take a home office deduction, and I don't have a problem with deductions for the business furniture (desk, chair, lamp, shelving) - I'm having a problem with the rugs, paintings, curtains, etc. and the cost of painting the office when she isn't going to take the actual home office deduction. My point of concern is that these items aren't "ordinary and necessary" for her to do her job - I wouldn't have a problem with them if she was taking the business use of home deduction.
Am I being too conservative in my thought that to take the expenses that I'm questioning she needs to take the home office deduction?
She plans to add income to her return that will be self-employment income and she will meet clients in her office - but that will be for 2014 if that happens at all.
I'm not completing the return for her fiancé - and knowing what his occupation is, I don't believe he qualifies to take the home office deduction but I don't have his information to accurately determine that.
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