Home office deduction - new windows via insurance claim

[jv2011]

Hi there - in 2024 we filed a home insurance claim and replaced all the windows in our home. We also use our home for home office and qualify for the home office deduction. I'm aware that the percentage of whole home improvements / repairs is related to the percentage of the home that's used for business. 

I'm attempting to clarify: our insurance payment was lower than the final cost of all the replacements. Meaning we paid the contractor more than what we received for the windows. 

What portion, if any, is deductible under home repairs for the home office expense? Do I report the total amount of the windows, or just the difference between what we received in insurance payout and the final cost? (and we upgraded the windows to energy efficient so will be claiming that deduction as well). 

Thanks!

[Vanessa A]

You can use any method that would allow the expense to match the office. A simple one would be if you had 10 windows replaced and you paid $5,000 AFTER insurance paid, and you have 1 window in the office, you could deduct $500 for the home office window.