Can they show business deductions for their home office or for their inventory storage space?
There’s a lot of bad and out-of-date information out there regarding home office deductions. In 1994, there was a Supreme Court ruling, called the Solomon case, that disallowed a doctor’s home office, because the judges ruled that he did his work in the surgery at a hospital (although he didn’t have any other office). Since then, the law has changed a lot. There are only two things you need to prove to get the home office deduction: • It must be a space in your home that is used exclusively for your business. So it can be a separate room where you do all the work related to your eBay business. It cannot be a space in your house that you also use for personal use – such as your kitchen. • It must be used regularly for your eBay business. That’s it. You don’t need to have a separate entrance, and it’s okay to have another location for your business as well. The rules for showing a deduction on storage space are different, and these are especially relevant to eBay sellers. If you store in
