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    Business Use of Home

    A woman operates a day care facility in her home and claim about 35% of square footage of home used for business. In addition she answers to phone for her brother's business. She does not have customers coming in to her home for the telephone answering business.
    Since she already claims a large portion of home for day care activities is it possible to separate the two activities and OIH deduction for the telephone answering service. I suspect the two are not separated very well in terms of space used.
    How would you handle this? Her brother gave her a l099 misc after I had prepared her return.

    #2
    The same home office can be used as the principal place of business for two or more separate business activities. The principle place of business test is determined separately for each activity. TTB 5-15

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