What Is the Home Office Deduction?

If you use part of your home exclusively and regularly for business, you may be able to deduct home office expenses. There are two methods: the simplified method ($5 per square foot, up to 300 sq ft) or the regular method (deducting a percentage of actual home expenses). This deduction is only available to self-employed people and business owners — not remote employees. The space must be used only for business, not as a guest room or general-purpose area. Report it on Schedule C (for sole proprietors) or Form 8829.