Can I deduct if i work from home can i deduct rent?

Schedule C, Line 30 for self-employed individuals. Home office expenses are reported on Form 8829, which is then transferred to Schedule C.

A freelance graphic designer uses a spare bedroom in their apartment as a home office. The room is 150 square feet, and the apartment is 1,000 square feet in total. The designer pays $1,500 in monthly rent. Using the actual expenses method, they can deduct 15% of their rent ($1,500 x 15% = $225 per month) as a business expense.

A calculation is required for this deduction.

To calculate the deduction using the actual expenses method, divide the square footage of the home office by the total square footage of the home to find the business-use percentage. Apply this percentage to your rent and other eligible expenses. For the simplified method, multiply the square footage of the home office by $5, up to a maximum of 300 square feet.

Moderate audit risk. Keep detailed records, including a floor plan showing the home office space, photos, and any documentation supporting the exclusive and regular use of the space for business. Maintain copies of your lease agreement and rent payment receipts.

IRS Publication 587