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Is if i work from home can i deduct rent a valid tax write-off?

TL;DR

Yes, rent can be deducted if you work from home, but only the portion that is used exclusively and regularly for business purposes. This deduction is subject to specific IRS rules and limitations.

Detailed Answer

The home office deduction allows you to deduct a portion of your rent if you use part of your home exclusively and regularly as your principal place of business or as a place to meet clients. The space must be used solely for business purposes, and you cannot deduct rent for personal living areas. For example, if your home office occupies 10% of your home's total square footage, you can deduct 10% of your rent as a business expense. This deduction is available whether you rent or own your home. However, if you are an employee, additional restrictions apply, and you must meet the convenience-of-the-employer test.

Where to Put It on the Tax Form

Schedule C, Line 30 for self-employed individuals. If using Form 8829, report the deduction on Line 35, which then flows to Schedule C.

Real World Example

A freelance graphic designer rents a 1,000 square foot apartment and uses a 100 square foot room exclusively for her business. She pays $1,500 in monthly rent. She can deduct $150 (10% of $1,500) each month as a home office expense.

Calculation Required

A calculation is required for this deduction.

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

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of the space's dimensions, photos of the office setup, and documentation showing how the space is used exclusively for business. Maintain copies of your lease agreement and rent payment receipts. Consider keeping a log of business activities conducted in the home office.

IRS Reference

IRS Publication 587, Business Use of Your Home.

Relevant Industries

FreelancersConsultantsRemote WorkersSmall Business Owners

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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

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