I am currently being audited by the IRS. They are questioning the size and facilities of my trading âspace.â It is a 1995 sf. office condominium located in the downtown of a major city in the U.S., and contains two restrooms, a small kitchen area, a reception area, conference room, several work stations, and a pool table. It is used exclusively for my trading. It was formerly used as a professional consulting office, with several employees. I am the only one who occupies and uses this space now and I have no employees. The agent is questioning the size and facilities, using the âordinary, necessary, and reasonableâ test of the IRS code. Iâm sure many traders, especially those that trade from their home office, get by with less, but I suspect that many others have larger spaces. By the way, I was previously audited twice, and neither denied the use or the expenses associated with the use of the space. I do use several work stations for reading and research, laying out charts. I use the pool table for a little rest and relaxation, not unlike an employee lounge. I know that many larger companies have pool tables and game tables for use by employees. My specific trading area has 4 monitors and 2 televisions. There is a separate computer, also used for trading research, in one of the other work areas. I have been using this office for the last ten years as my place of trading. My questions: How much space do you use, and what are your annual or monthly costs. My office is fully paid off, but I have utilities, real estate taxes, maintenance, leasehold improvements, and a property owners fee, totalling about $13,000/year or $1,100/month. I am hopeful that some of you may volunteer (anonymously of course) that your trading office is similar or even larger, and/or that your office expenses for rent, utilities, and parking are more than mine. I have researched a number of other options to rent space elsewhere in the downtown area, and most exceed what I am now paying. Thanks in advance for sharing any relevant info.