Home Office Deduction?

[GraceNY]

Would like to get some feedback on the following scenario.

Self-employed TP has an office he rents in a nearby town.  Last year, he worked from his "home office"  3 days a week starting in March and through the end of the year performing virtual sessions for clients in the mental health area.  Also, used the "home office" to schedule and confirm appointments, respond to business related emails, billing, etc..

According to PUB 587 (while not an authoritative source), page 4, "The following activities performed by you will not disqualify your home office from being your principal place of business."   Bullet Point 4 "You conduct substantial non administrative  or non management business activities at a fixed location outside your home. (For example, you meet with or provide services to customers, clients and patients at a fixed location of the business outside your home."  Bullet Point 5 "you have suitable space to conduct administrative or management activities outside your home, but choose to use to use your home office for those activities instead."

Thanks in advance for your input.

Grace

[Lee B]

What kind of business entity is he?

[GraceNY]

LLC filing Schedule C.

[GraceNY]

Bump.

Anyone?

[Lee B]

The only thing I can add is that there are a number of Tax Court Cases in this area, that really get in the facts & circumstances detail.

Based on three sentences, there isn't any way to know? 

[DANRVAN]

On 3/19/2021 at 12:56 PM, GraceNY said:

Last year, he worked from his "home office"  3 days a week starting in March and through the end of the year performing virtual sessions for clients in the mental health area.  Also, used the "home office" to schedule and confirm appointments, respond to business related emails, billing, etc

Sounds like that was his principal place of business;  and he did not conduct substantial admin or management duties from the 2nd location.

If that is the case he can also deduct travel to second place of business.