Home Office Deduction Calculator
Two methods. One winner. See whether the Regular Method or Simplified Method gives you a bigger deduction — and exactly how much you can write off.
Office & Home Size
Your office must be used regularly and exclusively for business — a dedicated room, not a shared space.
Do you rent or own?
Home Expenses
Enter your actual household expenses — the business % will be applied automatically.
Electricity, gas, water, internet
Renter's or homeowner's
General home upkeep
Depreciation (Optional)
Homeowners can depreciate the business portion of their home over 27.5 years. This increases your deduction now but may create taxable recapture when you sell.
Land can't be depreciated — check your property tax records
Recommended Method
Regular Method
Annual deduction estimate
Based on the business use % of your home expenses. Deduction cannot exceed net business income.
Talk to a bookkeeper →Regular Method Breakdown
Simplified Method
Office exceeds 300 sq ft maximum — simplified method is capped at $1,500.
Regular vs. Simplified: Which Should You Use?
Regular Method
- ✓Usually produces a larger deduction
- ✓Includes rent, utilities, insurance, repairs, and depreciation
- ✓No maximum square footage limit
- ✗Requires more recordkeeping and documentation
- ✗Depreciation creates taxable recapture when you sell your home
- ✗More complex to calculate each year
Simplified Method
- ✓Simple: $5 per square foot, done
- ✓No depreciation — no recapture risk when you sell
- ✓Minimal recordkeeping required
- ✗Capped at 300 sq ft ($1,500 maximum)
- ✗Often produces a smaller deduction
- ✗Can't carry forward unused deductions to future years
The Rules You Must Meet
Regular and exclusive use
The space must be used regularly for business AND exclusively for business — no personal use in that area at all. A dedicated home office qualifies. A kitchen table where you also eat dinner does not.
Principal place of business
Your home office must be your principal place of business, or where you regularly meet clients, or a separate structure on your property used for business.
Self-employed only (for most)
W-2 employees generally cannot claim the home office deduction under current law (suspended by the TCJA through 2025). This deduction is primarily for self-employed individuals and business owners.
Deduction cannot exceed net income
The home office deduction cannot exceed your net business income. If your deduction is larger than your income, the excess can be carried forward to next year (regular method only).
Don't Leave Deductions on the Table
The home office deduction is one of the most commonly missed.
A good bookkeeper makes sure deductions like this are captured and documented correctly every year — not discovered at tax time when it's too late to gather the receipts.
Get a Free Consultation →Stop losing sleep over your books.
You built something great. Let us handle the numbers — so you can stay focused on what actually moves the needle.
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