Home Office
Yes, if you use a dedicated space exclusively and regularly for business.
Details
The home office deduction allows you to deduct expenses for the business use of your home. The space must be used exclusively and regularly as your principal place of business, or as a place where you meet clients.
Conditions
- •Space must be used EXCLUSIVELY for business (no personal use)
- •Must be used REGULARLY (not occasionally)
- •Must be your principal place of business OR where you meet clients
- •W-2 employees are NOT eligible (only self-employed)
A freelance writer uses a spare bedroom exclusively as an office 5 days a week
An architect works from the dining room table during the day but eats dinner there at night
Common Mistakes to Avoid
- • Claiming a space also used for personal activities
- • Claiming excessive percentage of home (40%+ triggers audits)
Check Another Expense
Is Home Office Tax Deductible for Your Business?
Yes, home office is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and home office typically qualifies when used for legitimate business purposes.
Key Rules for Deducting Home Office
The home office deduction allows you to deduct expenses for the business use of your home. The space must be used exclusively and regularly as your principal place of business, or as a place where you meet clients.
Requirements to Claim This Deduction
- Space must be used EXCLUSIVELY for business (no personal use)
- Must be used REGULARLY (not occasionally)
- Must be your principal place of business OR where you meet clients
- W-2 employees are NOT eligible (only self-employed)
How to Document Home Office for Tax Purposes
Proper documentation is critical for any business deduction. For home office, you should:
- Keep all receipts and invoices showing the amount paid
- Record the date of the expense and the business purpose
- If mixed-use, maintain a log showing business vs. personal usage
- Store records for at least 3 years (7 years for major purchases)
Source: IRS Publication 587; IRC § 280A. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.
Related Expenses
Internet Bill
Partially deductible based on the percentage used for business.
Cell Phone Bill
Prorated for mixed use, or 100% if it's a dedicated business phone.
Office Furniture
Yes, furniture for your business workspace is fully deductible.
Computer / Laptop
Yes, fully deductible if used exclusively for business, or prorated for mixed use.
Office Supplies
Yes, office supplies consumed in your business are fully deductible.
Coworking Space
Yes, coworking memberships are fully deductible as business rent.