Whether you are self-employed or an employee,
you can get a home office deduction if you use a portion of
your home for business purposes - as your principal place
of business for any trade or business and/or as a place to
meet or deal with your patients, clients or customers in the
normal course of your trade or business. Expenses that you
may be able to deduct for business use of the home may include:
• The business portion of real estate
taxes
• Mortgage interest
• Rent, utilities
• Insurance
• Depreciation
• Painting and repairs
This deductible amount depends on the percentage
of your home that you used for business. However, if your
gross income from your business is less than your total business
expenses then the deduction will be limited.
You can deduct expenses related to a separate structure not
attached to your home, if you use it as an exclusive and regular
part of your business.
If you are self-employed, to figure your home office deduction
use Form 8829 and report those deductions on line 30 of Schedule
C, Form 1040. Qualified daycare providers and persons storing
business inventory or product samples fall under special rules.
If you are an employee, you have additional requirements to
meet. The regular and exclusive business use must be for the
convenience of your employer.
For more information see IRS Publication 587, Business Use
of Your Home, at IRS.gov or call 1-800-TAX-FORM (1-800-829-3676).
Links:
• Publication 587, Business Use of
Your Home
(PDF 214K)
• Form 8829, Expenses for Business Use of Your Home
(PDF
64K)
• Form 8829 Instructions (PDF
29K)
• Schedule C, Profit or Loss from Business (PDF
111K)
• Schedules A&B, Itemized Deductions and Interest
& Dividend Income (PDF
116K)
• Publication 4035, Home-Based Business Tax Avoidance
Schemes (PDF
1704K)
