Who qualifies
Self-employed people with a space used exclusively and regularly for business. The space doesn't need to be a full room, a dedicated corner works, but it cannot be used for anything else.
Simplified method
$5 per square foot, up to 300 sq ft. Maximum deduction $1,500. No depreciation, no depreciation recapture on sale. Simple and fine for most.
Regular method
Actual expenses allocated by business-use percentage. Mortgage interest or rent, utilities, insurance, repairs, and depreciation on the home portion. More paperwork, often larger deduction.
Have a specific situation?
Call the office and a human answers.
Why W-2 employees can't claim it
TCJA eliminated unreimbursed employee business expenses (including home office) from 2018 through 2025. If your employer reimburses through an accountable plan, it's tax-free to you.
Common questions
- Does claiming it trigger an audit?
- This myth is outdated. Properly documented home office deductions are not a notable audit flag.
- What about recapture when I sell the house?
- Under the regular method, depreciation taken is recaptured at 25% on sale. Simplified method has no recapture.