The Home Bathroom Deduction
4 Pages Posted: 3 Nov 2011 Last revised: 9 Jan 2012
Date Written: November 1, 2011
This viewpoint criticizes a recent Tax Court decision, Bulas v. Commissioner, denying an accountant deductions associated with a bathroom used almost entirely by clients visiting the accountant’s home office. The author argues the court interpreted the requirement in IRC § 280A(c) that the bathroom be used “exclusively” for business purposes in a way (1) unrealistically narrow; (2) inconsistent with standards imposed on business-related deductions generally; and (3) inconsistent with the standards the judge applied to the taxpayer’s home office across the hall, a former bedroom with respect to which office deductions were available.
Keywords: home office deduction, business deduction, bathroom, exclusive use, Bulas v Commissioner, IRC 280A
JEL Classification: K34
Suggested Citation: Suggested Citation