What is Home-Office Deduction?
Definition The home-office deduction lets self-employed taxpayers deduct expenses for a portion of their home used regularly and exclusively for business. It can be calculated with a simplified square-footage method or by allocating actual expenses like utilities, insurance, and depreciation. Under current law, employees generally cannot claim it for a home office used for their job.
It is a legitimate deduction many self-employed clients under-claim out of audit fear, so applying the exclusive-use rules correctly captures the savings safely.