Can I Write This Off?What is a home office deduction?
TL;DR
The home office deduction is available to eligible self-employed individuals who use part of their home exclusively and regularly for business purposes.
Detailed Answer
Where to Put It on the Tax Form
For self-employed individuals, report on Schedule C (Form 1040), and use Form 8829 to calculate the deduction.
Real World Example
A freelance graphic designer uses a spare bedroom exclusively as a studio for her business. She calculates the square footage of the studio compared to the total home square footage to determine the percentage of home expenses she can deduct.
Calculation Required
A calculation is required for this deduction.
The deduction can be calculated using the simplified method, which allows $5 per square foot up to 300 square feet, or the regular method, which involves calculating the percentage of the home used for business and applying that percentage to home expenses like mortgage interest, utilities, and repairs.
Audit Risk & Documentation Tips
To minimize audit risk, maintain clear records such as a floor plan showing the dedicated office space, photographs, and utility bills. Keep a log of business activities conducted in the home office to demonstrate regular and exclusive use.
IRS Reference
IRS Publication 587, 'Business Use of Your Home', and IRS Form 8829, 'Expenses for Business Use of Your Home'.
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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 10, 2025