Who qualifies for the home office deduction?

Self-employed individuals, independent contractors, and sole proprietors with a space used regularly and exclusively for business. W-2 employees cannot claim home office deductions since 2018.

Simplified vs regular method — which is better?

Simplified is easier (no depreciation recapture risk) and max $1,500. Regular method can yield higher deductions — e.g., 200 sq ft office in a 2,000 sq ft home gives 10% of rent, utilities, and insurance.

Does the home office deduction create depreciation recapture on sale?

Only with the regular method. When you sell your home, the portion depreciated through the regular home office method is subject to Section 1250 recapture, taxed at 25%.

Home Office Deduction Calculator (Simplified Method)

Calculate your home office deduction using the IRS simplified method ($5 per sq ft, max 300 sq ft = $1,500 max) or the regular method based on actual expenses and percentage of home used.

Use the full interactive calculator below, or

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Home Office Deduction Calculator (Simplified Method)

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Frequently Asked Questions

Who qualifies for the home office deduction?

Simplified vs regular method — which is better?

Does the home office deduction create depreciation recapture on sale?