Home Office Deduction

If your home is your principal place of work and you dedicate an office or portion of your home to work, then you may be able to deduct expenses. This applies to homeowners and renters alike. Here are some requirements to consider for this deduction:

 

You use your home office regularly and exclusively, and your home is your principal place of business.

  • Whether you have an office, studio, or portion of your home for work, you’ll need to figure out the percentage of your home that is dedicated to business. You can still deduct expenses even if you carry on your business in another location as well.
  • If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

 

If you are an employee and you use a portion of your home for business, you may qualify for a deduction for its business use. Added requirements:

  • Your business use must be for the convenience of your employer.
  • You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

 

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

 

Tip adapted from IRS.gov[i]

[i] https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

 

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