Can I Write This Off?

Can I write off renovations to a home office?

TL;DR

Renovations to a home office can be deductible if the space is used exclusively and regularly for business purposes.

Detailed Answer

Home office renovations are deductible if the office is used exclusively and regularly as your principal place of business or as a place to meet clients or customers. The deduction is limited to the portion of the renovation that applies to the office space. For example, if your home office is 10% of your home's total square footage, you can deduct 10% of the renovation costs. However, general home improvements that benefit the entire home, like a new roof, are not deductible as a home office expense but may be depreciated over time.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 30 for self-employed individuals; Form 8829 for detailed calculation.

Real World Example

A freelance graphic designer renovates their home office by installing new lighting and soundproofing. The office occupies 15% of their home's total area, so they can deduct 15% of the renovation costs on their tax return.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of your home used for business by dividing the square footage of the home office by the total square footage of your home. Apply this percentage to the total renovation costs to determine the deductible amount.

Audit Risk & Documentation Tips

Maintain detailed records of renovation expenses, including receipts and invoices. Keep a floor plan showing the dimensions of your home office relative to your entire home. Document the exclusive and regular use of the space for business purposes to minimize audit risk.

IRS Reference

IRS Publication 587, Business Use of Your Home

Relevant Industries

FreelancersSmall BusinessConsultantsRemote Workers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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