Home Storage and Rental ?

[Mike 64]

For those of you that store equipment and or chemicals at home or in your garage, do you charge yourself rent so you can write it off? Is it even possible and or legal to do that?

[steve r 14]

i have a 4 car garage for my machine and chemicals and so on .my office is up stairs in the bonus room .so my whole area is tax purpose only.some one has to pay for the garage .just built last year and its a tax wright off .so far .its 3000 sq ft of heated space .

[Doug T 19]

Mike,

You should check your home owners insurance policy about storing chemicals, I think most of them say its a no no no.

You do not want something to happen and they not pay, I'd rent space someplace.

Doug

[Crownroyal 14]

O my lord that is a large garage Steve. A 4 car garage with a bonus room 3000 sqft Nice.

Can we see a picture of the house I mean your Man Garage?

So you interested in someone to take care of the landscape, or does it need to be powerwashed? Kiddin

I built a 22x20 garage and I thought that was a good size.

[steve r 14]

O my lord that is a large garage Steve. A 4 car garage with a bonus room 3000 sqft Nice.

Can we see a picture of the house I mean your Man Garage?

So you interested in someone to take care of the landscape, or does it need to be powerwashed? Kiddin

I built a 22x20 garage and I thought that was a good size.

i builtm my own garage . the end is new this yesr and the other three doors are 13 months new added on to my home the end is door height 13 ft for center counsel boat.think my garage is big .my house is 6500 sq ft heated and ac

[steve r 14]

O my lord that is a large garage Steve. A 4 car garage with a bonus room 3000 sqft Nice.

Can we see a picture of the house I mean your Man Garage?

So you interested in someone to take care of the landscape, or does it need to be powerwashed? Kiddin

I built a 22x20 garage and I thought that was a good size.

ive got a fuul time maintance crew on my property 4 days a week .they take care of 60 acres .my driveway is 1/2 mile off the dirt road.3 ponds and lots of deer and turkeys .i can sit on my front porch and its like a box stand .

[Douglas Hicks 128]

Don't you have an accountant or CPA?

Douglas Hicks

General Fire Equipment Co of Eastern Oregon, Inc

[Jeff 232]

i builtm my own garage . the end is new this yesr and the other three doors are 13 months new added on to my home the end is door height 13 ft for center counsel boat.think my garage is big .my house is 6500 sq ft heated and ac

Hey Steve looks like a heck of a home, lets see some more pics.:lgbugeyes You get all that from spraying water for a living lol

Ive read and my accountant has told me taking home/office expenses is a red flag for the IRS and a better chance of getting an audit. even if you are charging off the right amount on taxes. For the little I would gain from home/office write off I pass on it. Who needs the hassle of an audit IMHO

I also read or heard something about when you sell and you've been claiming home office it can effect what you can write off on the home sale or something. I forget what it was maybe someone knows how it can effect home sale & taxes

[Mike 64]

Does it make a difference if it is a detached garage, not joined to the house?

[steve r 14]

Hey Steve looks like a heck of a home, lets see some more pics.:lgbugeyes You get all that from spraying water for a living lol

Ive read and my accountant has told me taking home/office expenses is a red flag for the IRS and a better chance of getting an audit. even if you are charging off the right amount on taxes. For the little I would gain from home/office write off I pass on it. Who needs the hassle of an audit IMHO

I also read or heard something about when you sell and you've been claiming home office it can effect what you can write off on the home sale or something. I forget what it was maybe someone knows how it can effect home sale & taxes

my business is good to me .I have 2 good cpas

[steve r 14]

Does it make a difference if it is a detached garage, not joined to the house?

I couldnt tell you if detatched or attached makes a difference.Ive had my same cpa for 19 yrs now .they do things that i dont know about.I was audited about every 3 yrs or so like clock work.nothing ever comes of it.

[Tim McCulla 14]

Hey Jeff, it would be your decision to take the write off (how much would you be able to take). But, I look at it like "I have to deal with this equipment and Chems at my garage, the office is in my house and I'm intitled to write it off - you bet I pay myself rent!" I would get a new CPA if he is afraid of taking an entitled deduction.

[Adrian 155]

my accountant was able to write off 2000 sf last year for me.

I have office space and a "warehouse" section of basement.

There are limitations about Residential office space. No advertising, gvw 24000 lbs. not to exceed for vehicle, storage of chems in limited quantities only. 1 vehicle only. But, yes , it can be written off as an expense. Plus the value (over a period of time) of all your office furniture and devices, like faxes copy machines, and pc's.

[Beth n Rod 1,279]

Ask your CPA. If you are entitled to a deduction, he/she should know.

Beth

[Barry M 73]

This is boring reading but might help.

http://www.irs.gov/pub/irs-pdf/p587.pdf

[Barry M 73]

For those of you who clicked on the link and were overwhelmed basically...

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation.

To qualify to claim expenses for the business use of your home, you must meet both of the following tests.

1. The business part of you home must be used exclusively and regularly for

your business.

2. The biz part of your home must be:

a. Your principal place of business, or

b. A place where you meet or deal with patients, clients, or customers in

the normal course of you business, or

c. A seperate structure (not attached to your home) used in

connection with you business.

It goes on to say that your home or office qualifies as your principal place of business if you meet the following.

1. You use the office exclusively and regularly for administrative or

management activities of your business.

2. Or you have no other fixed location where you conduct substantial

administrative or management activities for your business.

I don't think you can charge yourself rent but there are a few things you can deduct. I've also heard of tax preparers believing that it's better not to claim legal deductions if doing so will trigger an audit. A few good books I've read claim that this philosophy is foolish. As long as you're staying within the boundaries of the tax laws, you have no reason to fear an audit. Your only cheating yourself out of money.

[Michael Ahr 14]

Barry, you are right, it is a boring read. BUT it is a must read for anyone working out of their home. Now I will be better able to understand and answer my CPAs questions. A very big thank you.

Mike