When doing actual expenses am I listing my rent and utilities for the whole year? and the entire amount or just a percentage?
I appreciate any advice!
There is no set answer for whether it is better to use the simplified deduction or actual expenses for your home office expenses. It is different for every taxpayer depending on their circumstances. There are advantages and disadvantages to each.
For example, using the simplified method when you own your home, you will not have to take depreciation of the home office into account when you sell your home. But, if you claim the actual expenses and your home office deduction is limited according to the income of your business, then the unused portion is carried over to the following year.
For your case, you mentioned rent as one of the expenses. If you do not own your home, then you would not have the depreciation of the home office to consider. For you it would be advantageous to see which method gives you the better deduction.
When you enter the expenses, use the amount for the full year and it will then be prorated according to the square feet of the office relative to the square feet of the entire home.