The home office deduction is something that is available to taxpayers in the United States to claim as a tax deduction which will help to reduce their taxable income.

If the taxpayer uses direct income solely for business purposes then there is the option to claim a home office deduction. Eligibility is normally for the self-employed worker; however, there are other conditions where others can claim this deduction.

Defining Criteria

When it comes to the criteria for being able to claim a home office deduction and the determination of eligibility part of it is that the deduction itself needs to be used regularly and exclusively as the taxpayer’s primary place of conducting business.

The other definition is that it’s the portion of the home that the taxpayer uses in order to meet with their clients, customers, etc… as part of the norm of conducting their business. Tax deduction is going to depend upon the percentage of the time the home is used for business purposes.

You also will find that if you use a separate structure, meaning something that isn’t attached to the house; such as a garage and it is used both regularly and exclusively for your business than it can also have some relatable expenses that could be deducted; however, the deduction could be limited. The limitation comes from the gross business income being less than the total business expenses.

With qualification there are those certain expenses that can be included along with the total deduction amount. This is far from an all inclusive list but some of the expenses can include:

• Business portion of the rent
• Interest on the mortgage
• Insurance
• Real estate taxes
• Utilities
• More

By now you probably have a fairly good idea if you may qualify for deductions. The best thing to do is if you do to consult with your tax preparer and go over all of the financials to makes sure that you deduct enough but also do it the right way.