You can deduct expenses for a separate free-standing structure, such as a studio, 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.
Example.
John Berry operates a floral shop in town. He grows the plants for his shop in a
greenhouse behind his home. He uses the greenhouse exclusively and regularly in his
business, so he can deduct the expenses for its use, subject to the deduction limit.
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.
