How to Calculate Home Office Tax

What is Home Office Tax?

A home office deduction calculator computes the allowable deduction for using part of a home for business. The simplified method allows $5/sq ft (up to 300 sq ft, max $1,500); the regular method calculates actual home costs proportional to office area. The space must be used regularly and exclusively for business.

Step-by-Step Guide

1Measure dedicated office space
2Calculate percentage of home
3Apply IRS method

Worked Examples

Input

200 sq ft office, 2000 sq ft home

Result

10% home expense deduction

Simplified: $5/sq ft

Common Mistakes to Avoid

✕Not verifying results
✕Ignoring jurisdiction

Frequently Asked Questions

What does this calculator do?

Identify calculation need

How do I use this calculator?

Input required values

Ready to calculate? Try the free Home Office Tax Calculator

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