Can Carol deduct home-office expenses if her home office is used for personal activities when not in use for business?

In order to deduct home-office expenses, the Internal Revenue Service (IRS) requires that the space be used exclusively for business purposes. This means that if the home office is utilized for personal activities when it is not being used for business, it does not meet the exclusive use requirement.

The exclusive use test is a critical component in determining eligibility for home-office deductions. If there is any personal use of the space, it disqualifies the taxpayer from claiming a deduction for the expenses related to it. Therefore, since Carol’s home office is not used exclusively for business because it accommodates personal activities, she cannot deduct the associated home-office expenses.

This understanding emphasizes the importance of careful compliance with the exclusive use requirement to successfully claim these deductions.