Answers · Individual tax · Form 1040
Home Office Deduction Explained
A self-employed home office generally requires regular and exclusive business use and a statutory qualifying use under IRC §280A.
How it works
The rule, and what it turns on.
Actual or simplified methods may be available. Current federal rules generally do not allow an employee deduction for unreimbursed home-office expenses.
Example
A dedicated room used exclusively for a sole proprietor’s administrative work can qualify if the principal- place-of-business rules are met.
Common mistakes
What we see go wrong, and what we do instead.
- Multipurpose room.
- Deducting all household costs.
A better approach
- Use simplified method when it produces a practical result; compare with actual method.
Authority
Where this comes from, so you can check it.
IRC §280A(c)(1); IRS Publication 587.
Relevant case law
Commissioner v. Soliman, 506 U.S. 168 (1993) - historically important home-office case; Congress later amended IRC
§280A, so current statute controls.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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