If you operate a part-time business from your residence and you can
meet the “primary business location” or “convenience of the
employer” tests, then part of your home operating costs are

To illustrate, suppose you sell Avon, Amway or Mary Kay products
from your home where you have an office and store inventory and
supplies. Then you can qualify for the home-business tax deduction.

But your home use must be a business, not a hobby or investment. In
the case of Joseph Moller, he earned 98 percent of his income from his
investment business. He was a passive stock and bond investor operating
from his living room. But the U.S. Court of Appeals denied his
home-business deduction for investing which, the court said, was not a