GLOSSARY · TAX & ESTATE

Home office deduction

A deduction for self-employed people who use part of their home regularly and exclusively as their principal place of business, or to meet clients. It can be figured with a flat rate per square foot (the simplified method) or from the business share of actual home costs, including depreciation (the regular method). Employees cannot claim it on their federal return.

Also called: business use of home, Form 8829, simplified home office method, simplified method

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CHAPTER · TAX DEDUCTIONS & CREDITS MASTERY · STRATEGIESThe Home Office Deduction CHAPTER · SIDE INCOME & FREELANCING MASTERY · DEEP DIVETaxes on Side Income

RELATED TERMS

Self-employment tax

SOURCES

Publication 587, Business Use of Your Home. Internal Revenue Service.

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