Home office deduction guide
March 15, 2026
Introduction
The home office deduction is one of the most powerful — and most under-claimed — deductions for self-employed filers.
Two methods to calculate
Simplified method: $5 per square foot, up to 300 square feet ($1,500 maximum).
Actual expense method: percentage of home used for business × eligible expenses (utilities, mortgage interest, depreciation, insurance, repairs).
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