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The Basics on Regular Home Office Deductions

Audio version available here:

Length: approx. 1 min. 20 sec.

Welcome to the XQ CPA Tax Day Checklist, a series sharing tax tips every day leading up to the April 15th tax filing deadline. Yesterday we discussed the simplified method for home office deductions. Check out the last post so you are informed about both methods before proceeding with preparing your taxes.

As we mentioned, there are two deduction methods for home office deductions. Today’s method is the regular method. This method is based on the percentage of your home devoted to office use. You need to determine the size percentage of the room you use for your business activities to then deduct its indirect expenses. Direct expenses relating to your home office can be deducted in full.

Expenses deductible using the regular method include mortgage interest, insurance, utilities, repairs, maintenance, depreciation, and rent. To claim this deduction on your tax return, fill out and submit Form 8829 along with your Schedule C.

The simplified home office deduction may be easier to claim, but if you want to fully maximize your deduction, the regular method may be favorable. In the end, choose the method that best fits your situation.

Want more tax tips? XQ CPA has all the latest and greatest tax tips and business news for 2023 tax filing. Go back and check out this week’s tax tips and stay tuned for more soon!

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top-down view of businesswoman working at computer in home office


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