Home office deduction rules are a bit tricky but all you need is a little attention to detail. If you work from home and plan to claim a home office tax deduction, consider the answer to these questions first:
Are you using your home office exclusively and regularly for either:
- Your principal place of business,
- A place to meet with clients in the normal course of your business,
- In any connection with your trade or business where the business portion of your home is a separate structure not attached to your home,
- On a regular basis for certain storage use (see storage of inventory or product samples), or
- As a daycare facility.
If you answered yes, to any one of the three options listed above, then you have met the requirements for a qualified home office and you can claim the deduction. You will be able to deduct a percentage of you household expenses such as rent, mortgage expenses, utility bills, repairs, insurance and home depreciation. The value will depend on what percentage of your total home square footage your home office occupies.