Home Office Principal Place of Business

Your home office is treated as your principal place of home based business if your home office is the place where you conduct your home based business. This home based business may be your prime activity or a
sideline business. As long as this home office is the main location for the particular activity, it is your principal place of business.

Principal place of business

Generally for a home office to be your pPrincipal place of business, it is the location where you earn your money. However, one court has recognized that a musician who spends considerably more time using one room in a home for practice so that she can perform with symphonies and make recordings can treat that room as the principal place of business. However, this reasoning may or may not be extended to other types of professionals. For example, an attorney who prepares and rehearses his opening and closing arguments in a home office.

The home office is considered to be the principal place of business if the home office is used for substantial managerial or administrative activities and there is no other fixed location for such activities.

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