Can I take a home office deduction?
Short answer: If you are self-employed and use part of your home regularly and exclusively for business, yes. W-2 employees generally cannot.
Self-employed people can deduct a home office when the space is used regularly and exclusively for business and is your principal place of business or where you meet clients.
There are two methods:
- Simplified: a flat rate per square foot, up to 300 square feet.
- Regular: the business share of mortgage interest or rent, utilities, insurance, repairs and depreciation, based on the office's share of the home.
W-2 employees cannot deduct a home office on their federal return, even when working from home full time.
A guest room that doubles as an office does not meet the exclusive-use test. Measure the space and keep photos in case of questions.
General information from Davis Schuler & Associates, LLC, not advice for your situation. Tax rules and thresholds change; confirm the current rules before acting.
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