Can I deduct my home office expenses?
You may be able to deduct your home office expenses for your business, if you use a portion of your home as your principal place of business on a regular basis, and that portion of your home is used exclusively for your business.
Regular and Exclusive Use Test:
If you use your home office for personal use as well as business, you can't take the home office deduction. You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.
If you use a portion of a room exclusively for business and a portion of the room for personal use, you may still be able to take the home office deduction on that portion of the room used for business.
Daycare providers still qualify for the home office deduction, even if the portion of the home used for child care isn't used exclusively for business.
Principal Place of Your Business Test:
You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction.
If you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business.
For example, if you're a salesperson who doesn't have an office anywhere other than your home, then your home office where you do your paperwork and administrative work meets the principal place of business test.
See the Figuring the Deduction section of Publication 587 for details on how to figure out your home office deduction using actual expenses or the simplified method.
Regular and Exclusive Use Test:
If you use your home office for personal use as well as business, you can't take the home office deduction. You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.
If you use a portion of a room exclusively for business and a portion of the room for personal use, you may still be able to take the home office deduction on that portion of the room used for business.
Daycare providers still qualify for the home office deduction, even if the portion of the home used for child care isn't used exclusively for business.
Principal Place of Your Business Test:
You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction.
If you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business.
For example, if you're a salesperson who doesn't have an office anywhere other than your home, then your home office where you do your paperwork and administrative work meets the principal place of business test.
See the Figuring the Deduction section of Publication 587 for details on how to figure out your home office deduction using actual expenses or the simplified method.
