rent expense-artist's live-work space

[d***@prodigy.net]

Is rent on a warehouse live/work space treated
differently that common office in home type rent?
Can one deduct one-half monthly rent as schedule C
expense (line 20b) or does one have to report rent on
schedule 8829 as an office-in-home exp.and thus
lose a substantial deduction?

My client is a full-time teacher and a full-time
artist (wood carvings) he rents a live-work space in a
warehouse type building shared with other artists in
Oakland, CA with upper floor devoted to personal living
and down stairs devoted to his art business. He
reports his art business on scheule C and has business
expenses exceeding business income for several years.
Only one lease. Separate entrances for each section.

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[b***@yahoo.com]

Post by d***@prodigy.net
Is rent on a warehouse live/work space treated
differently that common office in home type rent?
Can one deduct one-half monthly rent as schedule C
expense (line 20b) or does one have to report rent on
schedule 8829 as an office-in-home exp.and thus
lose a substantial deduction?
My client is a full-time teacher and a full-time
artist (wood carvings) he rents a live-work space in a
warehouse type building shared with other artists in
Oakland, CA with upper floor devoted to personal living
and down stairs devoted to his art business. He
reports his art business on scheule C and has business
expenses exceeding business income for several years.
Only one lease. Separate entrances for each section.

Why would he lose a deduction for reporting it as an office
in home? This deduction can also be used on schedule C. As
long as the space is used regularly and exclusively for
business, it qualifies for a Sch. C deduction.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>