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Home office: who actually qualifies (and why not everyone)

The exclusive-use standard and why home office questions are worth a CPA/EA conversation.

The home office deduction is real, but it is narrower than many people assume — which is why it is worth getting right rather than guessing.

Exclusive and regular use

The space generally must be used regularly and exclusively for your business. A dining table that doubles as a desk usually does not qualify, because it is not used exclusively for work.

Two methods

There is a simplified method (a flat rate per square foot, up to a cap) and an actual-expense method (a share of real home costs). Each has trade-offs, and the better choice depends on your situation.

Why we route this to review

Eligibility and method choice carry enough nuance that a home office question is a good reason to talk to a CPA/EA. Our checker flags home office interest for review rather than self-prep.

Sources

  • IRS — Home Office Deduction (Publication 587)

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Educational information only — not tax, legal or financial advice, and not specific to your situation. Consult a qualified CPA/EA before acting.