Home office deduction

[cmallow17]

Hello! 

How can I calculate a home office deduction (for a sole proprietorship) for a home that I own (i.e., no mortgage interest)? What items are eligible to be included in the calculation? Does it make any difference if my home is located overseas?

Thank you!

[marctu · Accepted solution]

The rules for claiming the home office deduction are the same regardless of whether you live in the US or abroad. This boils down to four basic qualifications: You must be self-employed; You must exclusively use your home office for work; You must regularly use your home office for work; and Your home office must be your principal place of business. 

You can use the simplified method, which is $5 per square foot of the office or actual expenses, the largest one, which is generally a mortgage.  Others are insurance, utilities, repairs, maintenance,  and depreciation.  

Thank you for the question @cmallow17 

All the best,

Marc T.

TurboTax Live Tax Expert

27 Years of Experience Helping Clients

[cmallow17]

Thank you, Marc, this is helpful. I was wondering if there was some other expense in lieu of a mortgage since that is the biggest expense, but alas not.

I appreciate you taking the time to explain and also listing out the requirements to qualify. 

Thank you!

[bostonian]

I cannot find where one would enter information for the simplified home office deduction.

Where would it be?

Thanks!

[PatriciaV]

The Home Office Deduction is part of the self-employment business section of TurboTax, as a separate item under Expenses. 

As you work through the interview for your home office, look for the page "What was the size of this home office?" Enter your square footage (office versus total) on this page. The next page allows you to choose between the simplified method and entering actual expenses.

Note that your home office deduction may be limited by your business income.

Additional info: Where do I enter the home office deduction for my business?