Deductions & Write-Offs
Home Office Deduction: Two Methods, Which Wins
Short answer
Simplified method: $5 per square foot, up to 300 sq ft = $1,500 max. Actual method: a percentage of your real home expenses (rent/mortgage interest, utilities, insurance). Actual usually wins for anyone over ~$1,500 of qualifying expense, but requires records.
The home office deduction has been audit-bait for decades, but the rules are well-defined and safe to take if you actually qualify. The space must be used regularly and exclusively for business.
Qualification checklist
- Used regularly (not occasionally) for business
- Used exclusively for business (no kid homework on the desk)
- Your principal place of business OR where you meet customers OR a separate structure
- You are self-employed — W-2 employees lost this deduction in the 2018 tax law
Simplified vs actual
| Method | Best when |
|---|---|
| Simplified ($5/sq ft, 300 ft max) | Small space, low rent, want zero paperwork |
| Actual (% of real expenses) | Larger space, high rent or mortgage, willing to track |
Frequently asked questions
Can I deduct a home office if I work mostly on-site at customer locations?
Yes, if you use the home office to schedule, invoice, store materials, or do other substantial administrative work and have no other fixed office.
Tax-ready records, automatically.
Glo Invoice tags every expense and 1099 contractor so tax time is a download, not a scramble.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.