What Does the IRS Consider a "Home Office?"

Tax Professionals' Resource
June 12, 2012 — 1,868 views  
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Whether you own your business or are a remote employee, you may be eligible for a home office deduction on your taxes. Home office expenses and deductions vary depending on the type of the business and the space it used. However, there are rules outlined in Publication 587 "Business Use of Your Home" to help an individual claim the deduction if eligible.

To claim the business use of your home, you must use part of your property exclusively and regularly as the place you meet clients or customers in the normal course of operating the company. In addition, it must be the principal place of business. Other entities that may be included in the deduction include a separate structure that is not attached to the home, such as a garage, a space regularly used for storage or rental use or a daycare facility.

The International Revenue Service (IRS) and home office rules vary. Consult with a tax professional or visit the agency's website for more details on claiming a home office as a tax deduction.

Tax Professionals' Resource