Tax Experts

Tax Rules for Personal Use of a Home Office

By Kevin McCormally, Editorial Director, Kiplinger.com

April 2008

Q: Only I use the office in our home, but I also use the computer for taking care of the personal bill paying and tracking. All other use has to do with my internet marketing. Is this exclusive enough? -- J. Casey

Kevin's Answer

Exclusive use is suppose to eliminate any personal use, no matter how small or insignificant, of the space so, by a strict definition, your personal bill paying would prevent the home office deduction.

That said, I must report that CPA with a lot of experience in this area told me that he believes that limited personal use -- he compared it to the personal use that an employee might be permitted to have of an office in his employer's building, such as an occasional phone call to his or her spouse -- does not violate the exclusive use test.

For more see: Don't Fear Taking Home Office Deductions

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