Home Office Expenses

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Home Office Expenses

To qualify for a deduction for home office expenses you must use the home office exclusively as an office, and it must be your primary place of business. In determining whether you meet this standard, there are 2 qualifying conditions:

• Exclusively and regularly as their principal place of business, as a place to meet or deal with patients, clients or customers in the normal course of their business, or in connection with their trade or business where there is a separate structure not attached to the home; or
• On a regular basis for certain storage use such as inventory or product samples, as rental property, or as a home daycare facility.

The deduction is the pro-rata portion of the house used for the office and includes the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, painting, repairs and depreciation. Note: The amount of depreciation deducted, or that could have been deducted, decreases the basis of your property.

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