A taxpayer is using a bedroom in their home as an office and part of their garage as a workspace. Both spaces are exclusively used for business (woodworking business).
From my research, I have read the following:
You can add the square footage of the garage to the total square footage of the home, then take the deduction for the dedicated business space.
My example:
House 2000 sqft & Garage 500 sqft = 2500 sqft
Office in home is 150 sqft & workstation in garage is 250 sqft = 400sqft
Therefore, the business use is 400 sqft & Total sqft of house and garage is 2500 sqft
Business proration 400/2500=16%
Does anyone know if this is the correct way to handle this situation?
