In a recent tax court case, the court sided with the IRS on disallowing home office deduction to a sole proprietor who claimed the living room as home office.
One of the pre-requisite for home office is that the space should be solely used for home office purposes. In this case, the court agreed with IRS that the living room was not solely used for home office because the access to all rooms was through the living room and so the living room was being used for other purposes.
(Savulionis, TC Summ. Op. 2015-19)
