Can I deduct my home office expenses?

The IRS allows for the deduction of home office expenses under certain conditions. The space must be used regularly and exclusively for business purposes and must be the principal place of your business. This means you can't use the space for personal activities, and it can't be a secondary location where you occasionally work. For example, if you are a freelancer and use a room in your home as your main place of work where you meet clients, you can deduct expenses related to that room. Expenses can include mortgage interest, insurance, utilities, repairs, and depreciation. However, the deduction is limited to the income generated by the business. If your home office expenses exceed your business income, you cannot use the excess expenses to create a loss for your business.