Tests

• The IRS uses two tests to determine if a space in the home of a self-employed person qualifies for a home office deduction. In order to deduct the costs of a studio from his taxes, a musician must use the studio, his home office, on a regular basis for the exclusive purpose of conducting his business. Secondly, the IRS requires the studio to be the artist's principal place of business if the studio is part of the musician's residence. If the artist's unattached garage or similar structure is his studio, the IRS requires the artist to use the dedicated space in connection with his business, meaning the IRS does not require the unattached structure to be the musician's principal place of business for him to qualify for a home office deduction.