Factual Friday: Are You Taking Advantage of the Home Office Deduction?

Did you know that over 50% of small business owners work from home? Whether you're a consultant, freelancer, photographer, or service-based business owner, working from home can come with valuable tax benefits—if you know how to use them.

One of the most overlooked deductions is the home office deduction, which allows you to write off a portion of your rent, utilities, and other expenses if you use part of your home exclusively for business purposes.

How the Home Office Deduction Works

If you have a dedicated space in your home that you use regularly for business, you may qualify for the home office deduction. The IRS offers two ways to calculate this:

1️⃣ Simplified Method – Deduct $5 per square foot of your home office, up to 300 square feet.
2️⃣ Actual Expenses Method – Deduct a percentage of rent/mortgage, utilities, internet, and home maintenance based on the portion of your home used for business.

💡 Example: If your home is 1,500 square feet and your office is 150 square feet, your office takes up 10% of your home. Using the actual expenses method, you could deduct 10% of your rent, electricity, internet, and other qualifying expenses.

Maximize Your Tax Savings

🚨 Common Mistake: Many entrepreneurs skip this deduction because they fear an audit. However, as long as you use the space exclusively for business, it is a completely legitimate tax deduction!

By properly tracking and deducting your home office expenses, you can lower your taxable income and keep more of your hard-earned money.

Need Help Calculating Your Deductions?

Join the DBR Bookkeeping Online Community HERE to learn how to maximize your tax savings.

📅 Want personalized help? Schedule a free call with Dr. Bryan Raya for expert bookkeeping and financial guidance.

Let’s start Doing Business Right!