Homebased business when the business is in a separate building?

[SensibleandHourly]

Good morning community, 

I have a client who is considering a major home improvement project including building a home office on their property. The proposed office would be very close to their home but separate. Does this arrangement preclude them from claiming home business expenses? 

Thank you for any who have a moment to respond, 

Dawn 

[Terry53029 · Accepted solution]

You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. Here is a link for you to research.

https://www.irs.gov/publications/p587#en_US_2022_publink1000226315

[SensibleandHourly]

Thank you!!!