I have a home bakery business. I installed a new $3,000 range and remodeled my kitchen to accommodate it. My accountant says I cannot deduct these costs since they are used for both business and personal. Is that correct? I needed the new stove to be able to bake the product.

ANSWER

The BIDaWIZ Team's Answer:

Your accountant is correct in that you do not qualify for the home office deduction since there is not a separate area within your home used exclusively for business. However, the stove may qualify for a depreciation deduction as listed property. You would need to have detailed documentation supporting the percentage used for business, but that deduction may be available to you.

References: IRC Section 167; IRS Publication 587
State: Colorado