Question

For personal home expenses to be tax deductible a portion of the home must be used exclusively on a regular basis as?

The principal place of business of the tax payer

The principal place where the taxpayer does most of his brainstorming

The taxpayer uses his home to study for required liscensing exams

Taxpayers must work from home 2 out of 5 days a week.

Answer 1

Solution: The principal place where the taxpayer does most of his brainstorming

Explanation: For deduction of expenses for business usage of the home, the taxpayer must use part of the home as one of the below:

-- The regularly and exclusive as the principal place of business for the business or trade;

-- The regularly and exclusive as the place where taxpayer deal and meet with the clients, patients, or customers in the normal course of the business or trade;

-- A structure which is separate i.e. not attached to the home;

-- On a regular basis for inventory storage or samples of product used in the business or trade of selling products at wholesale or retail;

-- For rental usage

-- As a facility of day care