IRS Home Office Requirements: Qualify and Deduct

To qualify for the home office deduction, you generally must use a specific area of your home both regularly and exclusively for your trade or business, so a desk where you work and your family also pays bills typically does not qualify. The space does not have to be a separate room, but it should be a clearly identifiable area used for business rather than personal activities; limited exceptions to the exclusive-use rule apply to certain inventory storage and daycare uses.

Your home office generally must be your principal place of business, a place where you regularly meet clients or customers in the normal course of business, or a separate structure used in connection with your business. A home office can qualify as your principal place of business if you use it substantially and regularly for administrative or management activities and have no other fixed location where you conduct substantial administrative or management activities.

Keep documentation that supports regular, exclusive business use and your deduction, such as a floor plan, measurements, receipts, and records of your business activities; our team also recommends keeping business and personal items clearly separated in the designated area. For practical ideas, explore our home office setup guide and our featured digital download, Your Ultimate Home Office Guide, which includes a printable eBook and workspace setup planner.