40.16 Home Office for Sideline Business
You may have an occupation and also run a sideline business from an office in your home. The home office expenses are deductible on Form 8829 if the office is a principal place of operating the sideline business or a place to meet with clients, customers, or patients. See the deduction tests (40.12) and the income limit computation (40.15) for home office deductions. Managing rental property may qualify as a business.
Managing your own securities portfolio.
Investors managing their own securities portfolios may find it difficult to convince a court that investment management is a business activity. According to Congressional committee reports, a home office deduction should be denied to an investor who uses a home office to read financial periodicals and reports, clip bond coupons, and ...