@brotherr wrote:
But I need help to figure out how much can I deduct off electricity and internet? Also, if I could deduct the whole amount of the rent off my tax? And I am still figuring out with my parents how much should I give them for the rent
If you use the room exclusively as an office and for no other purpose, you can deduct the rent as a work expense. You can't deduct anything else (electricity, depreciation, etc.) because those bills are in your parent's name -- as they will be required to report the rent as taxable income, they may be able to deduct part of the household electric bill but that is their problem, not yours. You could only deduct electricity if you had a separate meter.
Likewise, you can't deduct anything for internet unless you have a separate business use-only connection in that room that is billed in your name. You can't deduct a partial amount of your parents' bill because it is not in your name. Your parents should set the rent to cover all the expenses of the space you are renting.
Incidentally, you'd better get this all in writing and do everything by the book, same as if you were renting an office from an unrelated third party. It needs to be a fair market value rent (what an unrelated landlord would charge for the same or similar premises) and your parents must report the rent as income. For example, if you were to "pay" your parents a large rent so as to create a large business deduction, and your parents did not report it as taxable income, the IRS would not be friendly to either of you.
