Home Office Tax Deduction: How Much Can You Write Off?

Generally, you must use a specific area of your home regularly and exclusively for business, so a desk in a room that also serves as a guest bedroom would not qualify if you use that same area for guests. Your office must also meet a business-use test, such as being your principal place of business, although special rules apply to certain daycare facilities and storage of inventory or product samples.

Measure your office and your home, then retain documentation of those measurements along with receipts, bills, and records showing your business use of the space. If you own your home and use the actual-expense method, depreciation rules can affect a future sale, so our team recommends discussing your situation with a qualified tax professional before choosing a method.

Employees generally cannot claim a federal home office deduction for unreimbursed employee expenses, even when they work remotely, though state tax rules may differ. If you are self-employed, an organized workspace can make it easier to document its business use; our home office setup guide offers ideas, and our Your Ultimate Home Office Guide is a digital download with a printable eBook and workspace setup planner.