Home Office Deduction Calculator

What the Home Office Deduction Calculator does

US taxpayers using part of their home regularly and exclusively for business can deduct home office costs in two ways. The simplified method allows a fixed amount per square foot up to 300 square feet. The regular method deducts the business share of actual home expenses and depreciation. This calculator shows both.

Formula

• Simplified = office sq ft (max 300) × rate per sq ft
• Business share = office area ÷ home area
• Regular = business share × (housing + utilities + insurance + repairs + depreciation)

Worked example

Using the starting values in the calculator above:

How to read the result

The regular method needs records of actual expenses, and depreciation claimed may be recaptured when you sell the home. The simplified method avoids both.

The space must be used regularly and exclusively for business; a desk in a shared family room usually does not qualify.

Estimates only, not tax advice. Rates and thresholds change; confirm current figures with your tax authority or adviser.

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