Can I Write This Off?Can you write off if i work from home can i deduct rent?
TL;DR
You can deduct a portion of your rent if you use part of your home exclusively and regularly for business purposes, under the home office deduction rules. However, the space must be your principal place of business or used to meet clients regularly.
Detailed Answer
Where to Put It on the Tax Form
Schedule C, Line 30 for sole proprietors or Form 8829 for detailed expense calculation.
Real World Example
A freelance graphic designer uses a spare bedroom in their apartment exclusively as an office. The room is 150 square feet, and the apartment is 1,500 square feet in total. The designer pays $1,500 in monthly rent. They can deduct 10% of their rent, or $150 per month, as a home office expense.
Calculation Required
A calculation is required for this deduction.
To calculate the deduction using the regular method, divide the square footage of your home office by the total square footage of your home to find the business-use percentage. Apply this percentage to your total rent to find the deductible amount. For the simplified method, multiply the square footage of your home office by $5.
Audit Risk & Documentation Tips
Moderate audit risk. Keep detailed records, including a floor plan showing the office space, photos, and a log of business activities conducted in the home office. Maintain copies of your lease agreement and rent receipts. Document how you calculated the business-use percentage.
IRS Reference
IRS Publication 587: Business Use of Your Home.
Relevant Industries
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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 25, 2025