Definition
Tax deduction for home office expenses if used exclusively and regularly for business purposes.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Home office deduction allows deducting portion of rent/mortgage, utilities, depreciation, and maintenance. Two methods: simplified ($5 per sq ft, max $300) or actual expenses.
Pro Tip
Home office deduction triggers depreciation recapture; understand tax consequences before claiming.
Example
Deducting $4,000 annual home office expenses using 400 sq ft office at $10 per square foot simplified method.