Husband & Wife are Not Sharing Their Home Office

June --

I’m just finishing up your book, Self-Employed Tax Solutions, and I’ve enjoyed it immensely. Thanks for putting all this gobbly-gook into something normal people can comprehend!

I’m still confused by the home office rules. (Who isn’t?!)

Here’s my situation: I am an independent software developer, working most days from our home in Shoreview, MN. I've been an independent since 2003. My husband is also an independent (he’s a technology strategy consultant - he went independent last year). Typically he does not work from home, although occasionally he does. We have a large office, and while there isn't a wall between us, the room is clearly bifurcated between his “space” and mine. (Mine has carpeting and his does not. We have completely separate desks, etc.)

In the book, you note that both “Victor Visual” and his wife share the studio, and thus can’t claim the deduction because neither has exclusive use. But then later on, you note that a business area doesn't have to be an entire room.

I’m wondering if I can take the deduction for my section of the office (and perhaps the area where I house my server rack and printers, in the room next door.) I assume that we cannot both take the deduction – him for his half and me for mine (then again, since our businesses are separate, perhaps that is okay, too?)

Note: I did read the items on the blog under husband-wife business and home office, so if I missed the answer, I am sorry.

Thanks, Avonelle from Shoreview, MN


Hello Avonelle,

Thanks for your generous comment on my book. I think indies are normal people. It's the rest of the work that's got it off-center!

It's important to understand that a home office does not need to be an entire room. It just needs to be an area of your home, apartment, even houseboat, that is used exclusively for your business.

An aside ... sometimes exclusive use is not required, for instance, for day care and inventory storage.

So, if you use half the room for your business and your husband uses the other half for his business, then you each get a deduction for your share of the room in relation to the total size of your home.

Here's another way to visualize it: Were you to have a 2000 square foot apartment and your area were the extra bedroom, 10 feet by 20 feet, then your home office is 200 square feet or 10% of your apartment. If your husband used a 10 by 10 area of the den for his desk and bookshelf then his 100 square feet equal 5% of the apartment.

You may take 10% of the costs of running your apartment as a business expense. He may take 5%.

Were you both to work in the same space for two different businesses, then neither of you would have exclusive use and so neither of you would get a home office deduction.

Best,
June