Asked by e
Delia lives in a 800-square-foot studio apartment. Her rent is $1,700 monthly. She runs her own bakery business and does all of her baking in her kitchen. The kitchen is 200 square feet. She also cooks her personal meals in the kitchen. What percentage of her rent may she deduct as a business-use-of-home expense?
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Answered by
GPT-5 mini
0%.
IRS rules require the part of your home used for business to be used "exclusively and regularly" for that business. Because Delia also uses the same kitchen for personal cooking, it does not meet the exclusive-use test, so she cannot claim a business-use-of-home deduction for the kitchen.
(If the kitchen were used exclusively for the bakery, the business percentage would be 200 รท 800 = 25% of rent.)
IRS rules require the part of your home used for business to be used "exclusively and regularly" for that business. Because Delia also uses the same kitchen for personal cooking, it does not meet the exclusive-use test, so she cannot claim a business-use-of-home deduction for the kitchen.
(If the kitchen were used exclusively for the bakery, the business percentage would be 200 รท 800 = 25% of rent.)
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