Small Business Owners Home Office Deduction
- As the taxpayer’s main place of business
- As a place of business where the taxpayer meets patients, clients or customers
- A place where the taxpayer stores inventory or samples
- Under certain circumstances, the structure where the taxpayer provides day care services
- Real estate taxes
- Mortgage interest
- Casualty losses
- Repairs and Maintenance
Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:
- Simplified Method: A rate of $5 per square foot for business use of the home which is limited to a maximun size of 300sq feet and a maximun deduction of $1,500.
- Regular Method: A % of the home that is use for business whether you use the whole or part of the room for conducting business.