Deductions for a home office are based on the percentage of your home devoted to business use. The home office deduction is available for homeowners and renters, and applies to all types of homes.

Basic requirements:

  • Regular and exclusive use for business
  • Principal place of your business

You can use one of the following options:

  • Simplified option: Measure the area of your home used for a qualified business use (limited to 300 Sqf) and multiply by $5.00 to figure out the annual deduction you can deduct.
  • Actual: Actual expenses may include rent, mortgage interest, depreciation, insurance, utilities and other expenses. Based on the percentage of your home devoted to business use, calculate business expenses.

Note that there are tax implications of selling a home that was used partly for business.

I created this blog to help understand certain basic aspects of U.S. tax law. Of course, each situation is unique and nothing that is on this site will ever replace the expert advice of a tax professional.

Please do not hesitate to contact me should you have any question.

Blog in French is available:  https://taxesauxus.wordpress.com/

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