If you use part of your home for business, you may be eligible to deduct expenses for the business use of your home. This is true whether you are a homeowner or renter, in an apartment or mobile home, working for an employer or even self-employed. Expenses may include mortgage interest, insurance, utilities, repairs, and depreciation.

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In order to qualify for a home office business tax deduction, you must meet two basic requirements:


  • You regularly and exclusively use part of your home for conducting business.

  • You use your home as your primary place of business, even if you conduct some business outside your home.


Employees using part of their home for business must meet these additional requirements:


  • The business use of your home must be for the convenience of your employer.

  • You cannot rent any part of your house to your employer and then use that rented portion to work for that employer.


You need to figure out the percentage of your home that you use for business since deductions are based on this percentage of use. Special rules apply for different situations, such as daycare providers, so be sure to check out the IRS publication 587 Business Use of Your Home, and read the instructions when filing form 8829 Expenses for Business Use of Your Home. As of January 2013, the IRS allows homeowners to choose from two different formulas for determining the amount of any potential business tax deduction.  

Get Started Incorporate your business Answer a few questions. We'll take care of the rest.

Get Started Incorporate your Business Answer a few questions. We'll take care of the rest