{"id":3593,"date":"2023-03-09T05:39:00","date_gmt":"2023-03-09T05:39:00","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=3593"},"modified":"2023-03-10T04:35:10","modified_gmt":"2023-03-10T04:35:10","slug":"home-office-deduction-calculator","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/","title":{"rendered":"Home Office Deduction Calculator"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction.webp 1200w\" sizes=\"(max-width: 1122px) 100vw, 1122px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-1024x576.png\" height=\"631\" width=\"1122\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/home-office-deduction.png 1200w\" sizes=\"(max-width: 1122px) 100vw, 1122px\" class=\"wp-image-6886 sp-no-webp\" alt=\"home office deduction\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>The <strong>home office deduction<\/strong> calculator is an easy way to compute the deduction you can claim for carrying your business or profession from one corner of your home. It is a fact that the IRS allows expenses incurred on the portion of home and equipment or infrastructure necessary to carry out business to be deducted from the gross income of the homeowner or renter.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662761177a674\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662761177a674\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#Two_methods_for_home_office_deduction\" title=\"Two methods for home office deduction\">Two methods for home office deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#Home_Office_Deduction_Calculator\" title=\"Home Office Deduction Calculator\">Home Office Deduction Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#What_is_the_simplified_home_office_deduction_method\" title=\"What is the simplified home office deduction method?\">What is the simplified home office deduction method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#What_is_the_Regular_Method\" title=\"What is the Regular Method?\">What is the Regular Method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#Depreciation_on_home_office\" title=\"Depreciation on home office\">Depreciation on home office<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#Requirements_to_Claim_the_Home_Office_Deduction\" title=\"Requirements to Claim the Home Office Deduction\">Requirements to Claim the Home Office Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#How_to_prove_your_home_as_your_principal_place_of_business\" title=\"How to prove your home as your principal place of business?\">How to prove your home as your principal place of business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.irstaxapp.com\/home-office-deduction-calculator\/#How_do_you_claim_the_home_office_deduction\" title=\"How do you claim the home office deduction?\u00a0\">How do you claim the home office deduction?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Two_methods_for_home_office_deduction\"><\/span>Two methods for home office deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-yellow-background-color has-background\">There are two options for computing the amount of deduction that can be claimed while computing business income being carried out from a portion of your home. These are :<\/p>\n\n\n\n<ul class=\"has-yellow-background-color has-background\"><li>Simplified method<\/li><li>General Method<\/li><\/ul>\n\n\n\n<p>You can choose either the simplified or the regular method for any taxable year on your tax return. But once a method for a taxable year is selected, you cannot change to another method later. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Home_Office_Deduction_Calculator\"><\/span>Home Office Deduction Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<iframe loading=\"lazy\" width=\"700\" height=\"1000\" layout=\"responsive\" sandbox=\"allow-scripts allow-same-origin\" src=\"https:\/\/gsheetpress.com\/calculator?id=1593751169356\"><\/iframe>\n  \n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_simplified_home_office_deduction_method\"><\/span>What is the simplified home office deduction method<strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IRS Revenue Procedure 2013-13, January 15, 2013,<strong> <\/strong>initiated this method of the allowable deduction for expenditure on the home office. Under this simplified option, you multiply a prescribed rate by the allowable square footage of the office instead of determining actual expenses. For the tax year, the prescribed <strong>rate is $5 per sq ft area of the office<\/strong>, and the <strong>maximum area of home office allowable is 300 sqft.<\/strong> Refer to instructions<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/i8829.pdf\" target=\"_blank\" rel=\"noopener\"> <\/a>for<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/i8829.pdf\" target=\"_blank\" rel=\"noopener\"> form 8829<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Regular_Method\"><\/span>What is the Regular Method?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the <strong>regular method<\/strong>, you must determine the actual expenses of your home office. What are the home expenses that count toward the home office deduction? <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p587.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">IRS Publication 587<\/a>\u00a0provides that allowable office-in-home expenses are of three kinds:<\/p>\n\n\n\n<ol><li><strong>Direct expenses<\/strong>\u00a0related to the office are allowed 100%. Direct costs can be deducted in whole; indirect expenses are deducted proportionately, according to the office square footage compared to the square footage of the total house; unrelated expenses are not deductible.<\/li><li>Indirect expenses\u00a0apply to the entire home but are allowed proportionately. Indirect costs might include the following:<\/li><\/ol>\n\n\n\n<ul class=\"list-style-asterisk bs-shortcode-list has-yellow-background-color has-background\"><li><a href=\"https:\/\/www.irstaxapp.com\/7-rules-for-mortgage-interest-deduction-while-computing-taxable-income\/\">Mortgage interest<\/a><\/li><li>Qualified mortgage insurance premiums<\/li><li>Property taxes<\/li><li>Depreciation<\/li><li>Rent (if you do not own the home)<\/li><li>Utilities and services (like trash removal and cleaning)<\/li><li>Repairs (unless the repair involves only the office, then it is direct)<\/li><li>Security system<\/li><li>Casualty losses<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Depreciation_on_home_office\"><\/span>Depreciation on home office<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can also get a portion of depreciation related to the house in proportion to the area. In  Form 8829, Part III  provides the way to figure your depreciation deduction. For more, click the home office <a href=\"https:\/\/www.irstaxapp.com\/depreciation-calculator-for-home-office\/\">depreciation calculator<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirements_to_Claim_the_Home_Office_Deduction\"><\/span>Requirements to Claim the Home Office Deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction:<\/p>\n\n\n\n<ol><li>You must regularly use part of your home exclusively for conducting business. <\/li><li>You must show that you use your home as your principal place of business. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_prove_your_home_as_your_principal_place_of_business\"><\/span>How to prove your home as your principal place of business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To qualify for a home office deduction, you must prove that you use your home as your principal place of business. But IRS also allows home office deductions on separate structures like a &#8211; studio, garage, or barn- if you prove that they are used exclusively and regularly for your business. Such a structure part and parcel of your business or profession need not be your principal place of business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Proof of using specific space for office<\/h3>\n\n\n\n<p>The following can establish your claim of home office deduction.<\/p>\n\n\n\n<ul><li>Your business letterhead\/visiting card mentions a particular portion of your home as an office address.<\/li><li>You only debit the expense proportionate to the area used out of the total home space.<\/li><li>Bills vouchers for the office furniture and equipment should be preserved, and those things must be installed inside the area you claimed as the office.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_do_you_claim_the_deduction_6\"><span class=\"ez-toc-section\" id=\"How_do_you_claim_the_home_office_deduction\"><\/span>How do you claim the home office deduction?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The procedure to claim home office deduction depends on the method chosen for computation of deduction i.e., regular or simplified.<\/p>\n\n\n\n<ol><li><strong>A simplified method<\/strong> to determine your deduction amount: Complete\u00a0<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040sc.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Form 1040, Schedule C<\/a>, and mention your deduction amount on Line 30.<\/li><li><strong>Regular method: <\/strong> Complete\u00a0<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-8829\" target=\"_blank\" rel=\"noreferrer noopener\">Form 8829<\/a>\u00a0(Expenses For Business Use Of Home) and write a line for each home expense. Refer to the\u00a0IRS instructions for the form.\u00a0Once form 8829 is complete, fill in Line 30 of Schedule C of Form 1040 with the deduction amount. <\/li><\/ol>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The home office deduction calculator is an easy way to compute the deduction you can claim for carrying your business or profession from one corner of your home. It is a fact that the IRS allows expenses incurred on the portion of home and equipment or infrastructure necessary to carry out business to be deducted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[147],"tags":[1378],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/3593"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=3593"}],"version-history":[{"count":3,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/3593\/revisions"}],"predecessor-version":[{"id":6891,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/3593\/revisions\/6891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/4696"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=3593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=3593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=3593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}