To deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited. To qualify to claim expenses for business use of your home, you must meet both of the following tests.

Your use of the business part of your home must be:

• Exclusive,
• Regular,
• For your trade or business, AND

The business part of your home must be one of the following:

• Your principal place of business,
• A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, OR
• A separate structure (not attached to your home) you use in connection with your trade or business.

If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above PLUS:

• Your business use must be for the convenience of your employer, AND
• You must not rent any part of your home to your employer and use the rented portion to perform services as an employee.

Whether the business use of your home is for your employer's convenience depends on all the facts and circumstances. However, business use is NOT considered to be for your employer's convenience merely because it is appropriate and helpful.

As an employee you must also determine Gross income from business.

Note. The IRS now allows a standard home office deduction. See the IRS website Simplified Option for Home Office Deduction for more information.

Related Links

• IRS Publication 587 Business Use of Home
• IRS Tax Topic 509 Business Use of Home