I am self employed, My home office is a converted shed that is attached to the roofline of my residence. Can I deduct the rent I pay for using that space as my home offic

Forum|Forum|1 year ago
February 5, 2025
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office is approx 128 sq ft. and separate electricity and air/ heat

Best answer by AnnetteB6

You cannot deduct the 'rent' that you pay, but if the shed meets the qualifications to be a home office, then you could deduct the separate utility bills for the shed. To deduct the full amount of the bills, the shed would need to be 100% used for your business.

Take a look at the following TurboTax article to learn more about what qualifies as a home office:

The Home Office Deduction

@7399ps

KrisD15

To clarify, are you a Schedule C Sole-proprietorship and to whom do you pay rent?

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7399psAuthor

I am a schedule c sole proprietor. I pay rent to myself. Typically in cash

VolvoGirl

Employee

Schedule C is a disregarded entity. It is the same as you. It is personally yours. I don’t think you can pay yourself rent. Then you would need to report the rent on Schedule E for Rental income. So it would be a wash. It’s probably like paying yourself. You cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.