Can I write off my home office?
To write off your home office, it must be your principal place of business, a place where you meet clients, or a separate structure not attached to your home. You can't use the space for personal activities, it must be used exclusively for business. The deduction is based on the percentage of your home that the office occupies. For example, if your home office is 10% of the total square footage of your home, you can deduct 10% of your mortgage interest, property taxes, and utilities. You can also deduct depreciation of the portion of the home used for business. However, when you sell your home, you may have to pay tax on the amount you depreciated. There are also limitations on the amount you can deduct if your business has a loss.