The answers to your questions are listed here for you as well as updated tax law for state and local taxes (SALT) under the One Big Beautiful Bill Act (OBBBA).
- If you are using actual expenses, and the mortgage interest was already entered in the itemized deduction section you should always check 'Yes' for your home office deduction. The exception would be if you were using the simplified method for your home office. See the information below for the details of this deduction.
- Yes, you would enter the full amount because your office square feet divided by your total home square fee would be the percentage that would be used. However, follow the instructions on where to enter your real estate taxes (excess real estate taxes on the next screen) if you are not itemizing.
Simplified Home Office Deduction: If used never requires depreciation recapture when sold later.
- Standard $5 per square foot (300 maximum square feet) used to determine home business deduction
SALT - Current Tax Law: The limitation has increased from $10,000 to $40,000 (MFJ) for 2025, limited only if the income is greater then $500,000 (MFJ).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
