Business Owner
intermediate · $50K - $100K
If you use part of your home regularly and exclusively for business, deduct either $5 per sq ft (max 300 sq ft = $1,500) or actual expenses (mortgage interest, utilities, repairs) proportionally.
Self-employed only.
Annual Limit
$1,500 simplified / unlimited actual
Tax Benefit
Deduct up to $1,500 (simplified) or more with actual expenses
Requirements
- Self-employed or independent contractor
- Space used regularly and exclusively for business
- Principal place of business or meet clients there
How to Implement
- 1Measure home office square footage
- 2Choose simplified method ($5/sq ft, max $1,500) OR actual expense method
- 3Track all home expenses if using actual method
- 4Report on Schedule C (Form 1040)
Frequently Asked Questions
Related business owner strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits
Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.