Can I writeoff a home office that I use 40 hrs/week when I don't own the house but pay cash rent?

I live with a relative, but I use the home office (it's basically mine). Though I don't own the house, can I write this off for taxes? I pay $700 cash of rent monthly.

Can I writeoff a home office that I use 40 hrs/week when I don't own the house but pay cash rent?
Short answer ~ yes. Longer answer is the amount of square footage that you are "renting" at the rent value, based on a ratio calculation to the $ 700.00 is the amount used.





In other words . . . if 25% of the space you have is office then, $ 175.00 of the $ 700 per month is expensed to office rental.
Reply:If you meet all of the rules for claiming a home office deduction, then it doesn't matter whether you own the house or rent.





But part of your question raises a red flag - you say "it's basically mine" - not sure what you mean by the "basically". If that space is used for ANY other purpose than your work, then no it isn't eligible for a home office deduction.
Reply:I think you can at least show proof such as phone records etc
Reply:Only if it is used "regularly and exclusively for business", you can deduct a fraction of the rent. For example, if the house has 5 rooms of equal size, 2 of which are used by the relative, and 3 of which are rented by you, and you use 1 of those "regularly and exclusively" for business, and the other 2 for other purposes, then you deduct 1/3 of the rent.
Reply:You can claim Home office deducation if you are renting, but it does not sound like you will meet the 100% use rule. The room has to be used 100% if the time for your business.





I have seen the IRS not allow the Home Office deduction because there were christmas decorations in the closet. Go to www.irs.gov and look at Publication 17, there is some basic information on the publication for deducting Home Office and the publication will refer you to other publications if you have additional questions.
Reply:1. Are you a business owner with a business license?


2. Do you get receipts for your cash rent?


3. If you are a business owner why doesn't your accountant prepare your returns?