Home Sweet Home
You could be eligible to deduct some costs of your home for business — if you follow strict rules. If you use part of your home or a detached structure like a garage “regularly and exclusively” for business purposes and it is your principal place of business, you can use one of two methods to take deductions.
Deduction Methods
Use the simplified option where you multiply $5 times up to 300 square feet of area in which you exclusively conduct business (up to $1,500). Or use the regular method, which is based on the percentage of your home devoted to business use. If your rent, or pay mortgage interest utilities and other related costs were, for instance, $20,000 and your home office was 20% of your home, you could deduct $4,000 from taxable income.
Other rules and restrictions apply, so talk to your tax professional to learn more.