Home Office

To deduct rent as a business expense when working from home, you must use part of your home exclusively and regularly as your principal place of business or as a place to meet clients. The space must be used solely for business activities, and the deduction is calculated based on the percentage of your home used for business. For example, if your home office occupies 10% of your home's total square footage, you can deduct 10% of your rent. This deduction is available to both homeowners and renters. However, if you are an employee, you generally cannot claim this deduction unless you are self-employed. It's important to note that the simplified option allows a deduction of $5 per square foot of home used for business, up to 300 square feet.