Thursday, April 26, 2007

Two Studios

Hi June,

My husband is a self-employed watercolorist. He shares a studio at an art center which he paints and sells his paintings (three or four days a week). The rest of the time (including nights) he paints at home.

Our basement and loft is full of his painting supplies and products. My husband does his paintings at basement during the warm season and in the loft during the cool seasons. The basement and the loft are only used for his working.

We have never used home office deduction because we thought he has a studio at the art center and we do not qualify. Do you think that we are qualified for home office deduction?

Do we need to provide IRS with any proof? If we can have the home office deduction, will there be any trouble from IRS because we hadn't taken any deductions before?

My English is not that good. I hope you can understand my questions. Please feel free to contact me at xxx-xxx-xxxx (day) and/or xxx-xxx-xxxx (night).

Your kind help and advice is highly appreciated. I look forward to hearing from you soon.

Kind regards,
May, in Fairfax, VA


Hello May,

Absolutely yes, you may take a deduction for a home studio. It doesn't matter how many other work places your husband uses.

There is no problem in starting to take home office now even though you qualified previously.

You do not need to provide proof of home office use with your tax return. If your return were audited by the IRS you would need to show proof. I suggest that clients take pictures of their home office or studio, with something in the photo that shows proves the date. This is because you may be audited in a year when your home office is now the baby's nursery or grandma's bedroom.


There are several posts on this blog that give more info on home office. You might want to start with Home Studio .

Cheers!
June

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