What Are the Rules for Claiming a Home Office?

To claim a federal home office deduction, you generally must use a specific area of your home both regularly and exclusively for your business; a spare bedroom used only as your office may qualify, but a desk on a dining table where your family also eats generally will not.

The area does not have to be a separate room, and your home may be a house, apartment, or another qualifying residence, but occasional business work or mixed personal and business use usually does not meet the regular-and-exclusive-use test.

Your home office generally must be your principal place of business, a place where you regularly meet clients or customers, or a separate structure used for your business; an office can also qualify as your principal place of business if you use it for administrative or management activities and have no other fixed location where you conduct substantial administrative or management activities.

Special rules can apply to space used for certain inventory storage or a qualifying daycare business, so do not assume the exclusive-use requirement applies in exactly the same way to every situation.

Measure the business-use area, retain records supporting your use and expenses, and compare the available methods each tax year, keeping in mind that deduction limits and other tax consequences can affect your choice.

For help planning the physical space, our home office setup guide and our Your Ultimate Home Office Guide digital download offer a starting point for organizing a workspace that fits your needs.