Can the home office deduction be taken for a second house?

[David]

Sch C client purchased a second house which he uses to help people with addictions and other issues. He no longer rents office space but will be using the garage or some portion of his second house.

Everything I read regarding the home office deduction appears to relate only to the business owner's primary residence. I can't find any regs or articles that address being able to take the home office deduction for space in a second house.

Can this client take the home office deduction for space used in his second house? Or does the business need to pay the owner rent and a Sch E be prepared?

Thanks for your help.

[jklcpa]

41 minutes ago, David said:

Sch C client purchased a second house which he uses to help people with addictions and other issues. He no longer rents office space but will be using the garage or some portion of his second house.

Everything I read regarding the home office deduction appears to relate only to the business owner's primary residence. I can't find any regs or articles that address being able to take the home office deduction for space in a second house.

Can this client take the home office deduction for space used in his second house? Or does the business need to pay the owner rent and a Sch E be prepared?

Thanks for your help.

I don't know where you are reading that home office relates only to primary residence. I've never seen that. The word "primary" is used frequently in home office deduction in discussing it as the primary place of business.

The answer you seek is in sec 280A(c)(1) and whether the second home is a dwelling unit used as a residence under the rules of sec 280(d) on that same page.

[David]

Thank you for the information, Judy.

I guess I was reading dwelling unit as the taxpayer had to live in the house in order to take the home office deduction.

Unless I'm not reading 280(d) correctly, it appears that the client can take the home office deduction for the second home even though he lives in another house as his primary residence. Using the house to help others is considered personal use which qualifies for the home office deduction?

Thanks again for your help.