Can I Deduct a Portion of My Home for Business?

Many small business owners operate their business from a home office. Many use the extra bedroom, an upstairs study or maybe just a specific portion of their bedroom. If you use a portion of your home for your business, you may qualify for the Home Office Deduction. The key to qualifying for the deduction is that the space that you use for business must be used "regularly" and "exclusively" for business and must be your principal place of business.

The most difficult of these for most small business owners is the exclusive requirement. The space must not be used for personal reasons as well as business. For example, if the spare bedroom is used for business and there is also a television that is used by the kids for playing video games, the the room is not used exclusively for business and would not qualify for the home office deduction.

The deduction is included on form 8829, Business Use of Your Home. Click below if you would like to review the IRS form 8829 or the detailed instructions for the form.

Form 8829
8829 Instructions

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