Sunday, August 14, 2011

Is it an audit risk to declare 100% of your home as office?

I own 3 homes. I live in one, rent out the other, and the third one is used whenever I bring work home. I only spend few hours a week in the third house because I have a "real" office where I go for work in another city (client site). But there are times when I bring work home and I only go to this third house to do work because it is the only one of my places with high speed internet . And I am my own LLC. Can I write off 100% of the third home as an office/business expense? That seems to make sense because I really and honestly do not use it for anything else. I don't even have a bed in that place. Even if I get audited, I'm sure I can easily prove that the place is used 100% for business. No bed, no TV, and not even a couch. But it does have a refrigerator (I like to snack), a desk, computer internet connection, ... Thanks for your opinion.

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