Deducting home office expenses

May 24, 2020

With many taxpayers now working at home, it’s important they understand the rules for deducting home office expenses.

In all cases, a taxpayer must use his or her home office regularly and exclusively to conduct business. Spreading work out on the kitchen table does not qualify, even if it happens every day, because the area is not exclusively used for work. A desk in the corner of a room, on the other hand, could qualify if it is solely used for work. See the rules here.

The IRS’ standard method of deducting home office expenses includes some calculation, allocation and substantiation requirements, but a simplified option is available to small business owners.

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