Our w-2 income (our primary source of income) is done 90% from a home office. In addition, there is consulting work done from this office.

[aclymer]

Your questions seem to only consider the consulting income for the home office.  How do we include the w-2 income for home office.  What is standard home office deduction.

[Coleen3 · Accepted solution]

You can't use the same space for two different jobs. You would need two different designated spaces if the office was used for both incomes simultaneously. The requirement is exclusive use. There can be no personal activities in that space nor activities for another job. See which deduction helps you best and delete the office for the other activity.

 If your consulting business has enough income to fully take advantage of the office, you may want to consider using the office to offset your self-employment income since you are being taxed more heavily for that income and you can still take the personal part of mortgage interest and property taxes on your Schedule A