For
the entire year, if you had the home business for the entire year. Example; if your electric bill was $100 each
month, that would be $1,200 for the year.
If your office uses 15% (office square footage is 150 and your home total square footage is 1000, then 150/1000 = 0.15 X 100 = 15%) of your home, then you will deduct 15% of $1200
and you will be able to claim $180, you will do this for all of your home
expenses for the year, not only utilities.
You can also use the Simplified Square Footage method which allows you
to multiply the square footage of your office by $5.00 and use that total as
your deduction. Example; home square footage is 150, (150 X $5 = $750), $750 is the deduction you would claim. Please see Turbo Tax The
Home Office Deduction for more information on home office deductions to
help you determine the best to use in your circumstance.
