Parking deduction for a leased apartment with qualified home office

Forum|Forum|3 years ago
March 12, 2023
1 reply
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I have a home office. It qualifies as my principal place of business and is in an exclusive area in my rental apartment. My apartment requires a separate parking fee for my car that I also use for business and I take a business mileage deduction. It seems that I should be able to take this parking fee as a duction, but I am not sure where....under the home office ( at a fraction of the cost based on sq. footage) or the entire cost under parking fees as a cost of my business, but f course I live and sleep at this apartment as well. Thank you for your help!

AnnetteB6

Since you are required to pay the parking fee for your apartment regardless of whether you have a home office or use your vehicle for business, it does not make sense that you should be allowed to deduct the entire fee as a business expense.

However, it is easier to justify that the parking fee is something that you would pay for your 'whole house'. Therefore, the parking fee can be entered as part of your actual home office expense and be deducted based on the percentage of your home used for the home office. As you go through the home office's actual expenses for the whole home, there is a page for Other Expenses that includes things such as a security system or HOA dues. Include the parking fee with these expenses so that the percentage can be applied.

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