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Bathroom Office

Unlikely.  The cubicle may have come into its own via Office Space and other iconic movies, but few use their bathroom as an office.  An accountant claimed he did but failed to get the coveted home office deduction in Bulas v. Commissioner.  Actually, the bathroom wasn’t really his office, but he claimed it too since it was adjacent to the bedroom he used as an office.  Bulas worked for the IRS for seven years and then for his own accounting firm for decades, preparing approximately 180 to 220 tax returns per year.

The question was whether it was an exclusively business bathroom.  Bulas claimed the bedroom—plus the adjacent hallway and bathroom—was exclusively business.  Unfortunately, the Tax Court found that his children and other non-business guests occasionally used the bathroom too.  It wasn’t exclusively business. Read more »