Technical topics regarding tax preparation.
27-Mar-2023 11:44am
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Okay, client is a sole prop, legitimately switched his condo from mixed use to 100% business use for the business. There is literally no personal use. Would you still fill out a 8829 for this, showing the 100%, or just put the expenses directly on Schedule C?
27-Mar-2023 11:57am
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So he has another house that he lives in? Does he not have any personal assets in the house? He does not stay the night in the house at all? All furniture is business? 100% business for what was a personal home seems a little iffy...
Still need the 8829 in my opinion
27-Mar-2023 12:04pm
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warnickcpa wrote:So he has another house that he lives in? Does he not have any personal assets in the house? He does not stay the night in the house at all? All furniture is business? 100% business for what was a personal home seems a little iffy...
Still need the 8829 in my opinion
Yes, it's set up like a business. No bed/Dressers, anything like that.
27-Mar-2023 12:07pm
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I would file the 8829 so that you acknowledge this fact that your client meets the requirements under Section 280A. Maybe others here may disagree
27-Mar-2023 12:09pm
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I wouldn't if it is truly 100% business property. Form 8829 is for expenses for business use of the home. This is not his home.
27-Mar-2023 12:32pm
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JAD wrote:I wouldn't if it is truly 100% business property. Form 8829 is for expenses for business use of the home. This is not his home.
True... it does say "dwelling unit"
27-Mar-2023 1:33pm
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It's NOT an office in the home.
27-Mar-2023 3:30pm
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I'd be curious if he's in violation of his homeowner's association bylaws. Probably doesn't change the tax treatment, but most condo associations won't allow you to use your home for business unless it's ancillary and only amounts to a home office. i.e. No employees or customers/clients visiting the property.
27-Mar-2023 4:02pm
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ManVsTax wrote:I'd be curious if he's in violation of his homeowner's association bylaws. Probably doesn't change the tax treatment, but most condo associations won't allow you to use your home for business unless it's ancillary and only amounts to a home office. i.e. No employees or customers/clients visiting the property.
It's Hemet, CA. Pretty sure you can buy a Tiger and turn your condo into a petting zoo and no one would care.
27-Mar-2023 4:49pm
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It's Hemet, CA. Pretty sure you can buy a Tiger and turn your condo into a petting zoo and no one would care.[/quote]
27-Mar-2023 5:22pm
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Milkshake wrote:It's Hemet, CA. Pretty sure you can buy a Tiger and turn your condo into a petting zoo and no one would care.
omg that is funny. I am also in CA, and I didn't know that there were still places like that in CA.
27-Mar-2023 11:19pm
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You mention mixed use before it was converted to 100% business use. If this occurred during the year, an 8829 is required from the first of the year to the time of conversion from mixed to 100% business use. After the conversion, no 8829 would be required.
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