Working from home? Learn how to claim a portion of your rent, utilities, internet, and equipment costs as legitimate tax deductions.
1. Qualifying Your Space
The space must be used regularly and exclusively for business. Document square footage and calculate the percentage of your home used for work.
2. Deduction Methods
- Simplified Method – $5 per square foot, up to 300 sq ft.
- Actual Expense Method – Allocate rent, utilities, internet, and depreciation based on the business‑use percentage.
3. Record‑Keeping Tips
Keep receipts, lease agreements, and a floor‑plan diagram. Use a dedicated spreadsheet to track monthly expenses and calculate the deductible portion.