No, you cannot claim the $12000 as a home office expense.
Your home office business deductions are based on either the percentage of your home used for the business or a simplified square footage calculation.
Generally speaking, to qualify for the home office deduction, you must meet one of these criteria:
- Exclusive and regular use: You must use a portion of your house, apartment, condominium, mobile home, boat, or similar structure for your business on a regular basis. This also includes structures on your property, such as an unattached studio, barn, greenhouse, or garage. It doesn't include any part of a taxpayer's property used exclusively as a hotel, motel, inn, or similar business.
- Principal place of business: Your home office must be either the principal location of your business or a place where you regularly meet with customers or clients. Some exceptions to this rule include daycare and storage facilities.
Please click here for detailed instructions on how to calculate the home office expense deduction.
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