Home office expenses are one way to catch a break when filing taxes with the IRS, and there are two ways to do it.
You may be able to claim this deduction if you use part of your home to run your business.
There are two different ways to claim the deduction.
Simplified home office deduction
You can choose the standard deduction of $5 per square foot that you use for your business in your home.
The most you can claim is 300 square feet.
Regular home office deduction
The other way is to determine what the actual expenses are for your home office.
This can count mortgage interest, insurance, utilities, repairs, and deprecation of your office space.
This deduction looks at the percentage of your home that is used for your business.
You must prove that you use this space as your principal place of business to claim the deduction.
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