Home Office Deduction Calculator
Calculate home office deduction for self-employed, freelancers, and remote workers. Regular vs Simplified method comparison.
Home & Office Details
Exclusive use means no personal activities in the office space. Required for deduction.
Business Income
Deduction limited to business net profit. Excess can carry forward.
Home Expenses (Owned)
Business Percentage
Total Home Area2000 sq ft
Office Area200 sq ft
Business Percentage10.0%
Final Deduction & Tax Savings
Calculated Deduction$$3173.64
Business Income Limit$$50000.00
Allowable Deduction$$3173.64
Tax Savings (42.3%)$$1342.45
Eligible for Home Office Deduction
Regular and exclusive use confirmed. Office qualifies as principal place of business or meets clients regularly. Deduction: $$3173.64. Tax savings: $$1342.45. File Form 8829 (regular method) or Schedule C line 30 (simplified).
Depreciation Recapture Warning
Regular method includes depreciation ($$1163.64/year). When selling home, depreciation recaptured at 25% tax rate. 5-year accumulated: $$5818.18. Potential recapture tax: $$1454.55. Simplified method avoids depreciation recapture.
Eligibility Requirements
Regular and exclusive useMet
Office must be used regularly and exclusively for business
Principal place of businessMet
OR meet clients there regularly, OR separate structure
Business purposeMet
Office used for administrative/management activities
Form 8829 (Regular Method)
Part I: Area of home used for business. Part II: Figure allowable deduction. Part III: Carryover of excess deduction. Report on Schedule C. Simplified method: No Form 8829 needed, report directly on Schedule C line 30.
Key Points
Exclusive use required: No personal activities. Principal place of business: OR meet clients, OR separate structure. Regular method: Actual expenses tracked, depreciation included. Simplified method: $5/sq ft, max $1,500, no depreciation. Employees: No home office deduction (suspended 2018-2025). Self-employed only. Deduction limited to business net profit. Carryover unused deduction. Depreciation recaptured at sale (regular method). Simplified avoids recapture.