A home office deduction is a tax deduction that allows eligible taxpayers to deduct a portion of their home expenses. A taxpayer may be eligible to deduct expenses if they use part of their home regularly and exclusively in their business.
Taxpayers have two methods to calculate their home office deduction: the simplified option and the regular method. Under the simplified option, taxpayers multiply a rate of $5 per square foot by the area of their home used for business. The maximum size for a home office is 300 square feet. The simplified option is a relatively easy method to use, but it may not provide as large of a deduction as the regular method.
