The IRS and a taxpayer with seven years of IRS work experience have battled over home office expenses in the Tax Court. The taxpayer operated an accounting business, and he used a bedroom in his residence exclusively for his accounting business. The taxpayer included the bathroom adjacent to the bedroom in his home office square footage. However, because the taxpayer testified that his children and personal guests occasionally used the bathroom, the Tax Court determined that athe bathroom was not used exclusively for business purposes (the children and personal guests may beg to differ), and it disallowed the expenses associated with the bathroom square footage.

See a copy of the Tax Court Memo here. Do you agree or disagree with the Tax Court's ruling?

FORUM DESCRIPTION (Adapted from Taxes in the Real World: If you want the bathroom to qualify as a part of a home office... on page 14-26) The IRS and a taxpayer with seven years of IRS work experience have battled over home office expenses in the Tax Court. The taxpayer operated an accounting business, and he used a bedroom in his residence exclusively for his accounting business. The taxpayer included the bathroom adjacent to the bedroom in his home office square footage. However, because the taxpayer testified that his children and personal guests occasionally used the bathroom, the Tax Court determined that athe bathroom was not used exclusively for business purposes (the children and personal guests may beg to differ), and it disallowed the expenses associated with the bathroom square footage. Required: See a copy of the Tax Court Memo here. Do you agree or disagree with the Tax Court's ruling?