I am a piano teacher and performing pianist. In past years, I taught at home. I have a room in my house that was used just for teaching or practicing and therefore could take a home office deduction. I now work for a university and no longer teach at home. But I still have income as a performer, and I still use that room for practicing on a regular basis. Can I still take a home office deduction even though my actual income is made on performances outside my house?

I understand the following in the basic IRS instructions:


I qualify under requirement 1 - the room is used regularly and exclusively for my business. It is requirement 2 that is unclear for me.

For example, a graphic designer or computer programmer would do work in their home office that they are directly paid for. But in my case, I am paid specifically for performing, and the performance takes place outside my home. But in order to be able to perform, I must practice, and the practicing takes place exclusively in my home. This is a little different than the example of meeting with a client in your home, although you could argue that both of them involve the preparation work that needs to be done before you can be paid for your services.

If I do indeed meet requirement 2, then the question is what should I put in Part II of form 8829, in the Line 8 Calculation worksheet. The instructions state that you specify the percent of gross income that is from business use of the home. How do I calculate this? I spend MANY MANY more hours practicing at home than I do performing, but the payment is for the performance. Perhaps 99% of the time spent is for the preparation, not the performance itself.. So can I put 99% in that worksheet?