Home Office Deduction
A deduction for the business-use portion of a home, available to self-employed taxpayers who use part of their home regularly and exclusively for business.
Detailed Explanation
Self-employed taxpayers can deduct the home-office portion of mortgage interest, property tax, utilities, repairs, insurance, and depreciation. Two methods are available: the Simplified Method ($5 per square foot up to 300 square feet) or the Regular Method (actual expenses based on the business-use percentage). The space must be used regularly and exclusively for business as the principal place of business. W-2 employees cannot claim a home-office deduction under current law.
Related TS CPA Service
Tailored and accurate tax preparation, because your financial situation deserves more than a template.
Learn about Individual Tax PreparationRelated Terms
Schedule C (Profit or Loss from Business)
The federal tax form filed with Form 1040 to report income and expenses of a sole proprietorship or single-member LLC treated as a disregarded entity.
Self-Employment Tax
The Social Security and Medicare tax (15.3% combined) paid by self-employed taxpayers on their net earnings from self-employment.
Have a Question About Home Office Deduction?
Get a free, no-obligation answer from a licensed CPA. We respond the same day.
Get Your Free Quote