Your allowed deduction is not based "only" on the percentage of floor space allocated to the home office. It also matters hust how much of your business you actually conduct in that home office too. That's rarely 100%. You're basically asked two questions.
- What percentage of time is your home office used for business. The answer to this question *MUST* *BE* *100%*. You may only use that home office 1 hour a week. but anytime you are in that home office it is for the purpose of conducting business, and absolutely nothing else. So if the kids also use that space for their gameboy or doing homework, then that home office is *not* used for 100% business use only.
- What percentage of business is conducted in the home office - While not unheard of it's not common for this to be 100%. I myself to computer consulting. My home office is used 100% for business only, and absolutely nothing else what-so-ever. However, only about 30% of my business is actually conducted in the home office. The other 70% is conducted "on site" at my client's physical location.
Now someone like a hair dresser for example who has a salon in their home would use that space 100% of the time their in it for business, and they would conduct 100% of their business in that home office. But someone like myself cannot possibly conduct 100% of my business in the home office.
