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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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