From the course: Taxes and Accounting for Music

Unlock the full course today

Join today to access over 22,400 courses taught by industry experts or purchase this course individually.

Home studio and home office

Home studio and home office

From the course: Taxes and Accounting for Music

Start my 1-month free trial

Home studio and home office

- If you use a portion of your home exclusively for your music business, you can deduct some of your rent, mortgage or utilities. Unfortunately, the home office expense is one of the most abused deductions, and the IRS is vigilant about violations. Learn about home office rules before claiming the deduction. As a general rule, you cannot take the home office deduction unless you use the space regularly and exclusively for business. Exclusive use means that you use this portion of your home only for business. So, for example, if the space is also used as a guest bedroom, or to store your spouse's crochet supplies, you cannot claim exclusive business use. The IRS is clear on this. Any personal uses of the space, will disqualify you from claiming the home office deduction. Satisfying the "regularly and exclusively" requirement is half the battle. You should also be ready to prove that your home office studio is your principal place of business, or you use a separate structure on your…

Contents