In order to take a home office, you must meet the qualifications below.
1. Regular and Exclusive Use.
You must regularly use part of your home exclusively
for conducting business. For example, if you use an extra room to run your
business, you can take a home office deduction for that extra room.
2. Principal
Place of Your Business.
You must show that you use your home as your principal
place of business. If you conduct business at a location outside of your home,
but also use your home substantially and regularly to conduct business, you may
qualify for a home office deduction. For example, if you have in-person
meetings with patients, clients, or customers in your home in the normal course
of your business, even though you also carry on business at another location,
you can deduct your expenses for the part of your home used exclusively and
regularly for business. You can deduct expenses for a separate free-standing
structure, such as a studio, garage, or barn, if you use it exclusively and
regularly for your business. The structure does not have to be your principal
place of business or the only place where you meet patients, clients, or
customers.
Generally, deductions for a home
office are based on the percentage of your home devoted to business use. So, if
you use a whole room or part of a room for conducting your business, you need
to figure out the percentage of your home devoted to your business activities.
