Code Section 162(a) Rental Expense allowed for personal residence.
Due to the pandemic, millions of taxpayers are now working from home. Although the IRS has not yet issued any guidance on whether they would receive special deductions, a current case was decided for the taxpayer. A taxpayer in a new case, Benton TC Summary Opinion 2020-12, 3/11/20 , worked out of a house in the suburbs and deducted the rent his business paid to use the place as an ordinary and necessary business expense. Generally, you can deduct rent paid by your business for use of a building, such as office building or warehouse, where you conduct business activities. But it’s not as clear-cut if you operate the business in a house normally intended to be used as a personal residence. The Taxpayer in this case relied on Code Section 162(a) , that allows Ordinary and Necessary business expenses Including rent. Code Section 162(a) states that " In general There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during ...
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