You may be eligible to deduct the portion of your home expenses related to your business through the home office deduction, however there are a few things you need to know: Your home office needs to be used exclusively for business. This means your couch, exercise room, and kitchen table don't count. Your home office needs to be a fully dedicated work space. Further, it needs to be used regularly for management and administrative functions.
Use our diagram to help you determine if you would qualify for this deduction. If you are allowed to take the home office deduction you can take it in two ways, simplified and regular (see below for details).
Disclaimer: The information contained here is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.