To qualify under the trade-or-business-use-test, you must use part of your home in connection with a trade or business. If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use.
Example.
You use part of your home exclusively and regularly to read financial periodicals and
reports, clip bond coupons, and carry out similar activities related to your own investments.
You do not make investments as a broker or dealer. So, your activities are not part of a
trade or business and you cannot take a deduction for the business use of your home.
Exclusive Use
Regular Use
Trade or Business Use
Principal Place of Business
Place To Meet Patients, Clients, or Customers
Separate Structure
Information courtesy of the Internal Revenue Service.
