Home Office Deduction Calculator
Compare the simplified method ($5/sqft) vs the regular method to find which gives you the larger home office deduction.
Simplified vs Regular Method
The simplified method is straightforward: multiply your office square footage (up to 300 sqft) by $5/sqft. No depreciation records, no complex allocation formulas, and no recapture when you sell your home. The trade-off: the maximum deduction is capped at $1,500/year regardless of actual home expenses.
When Regular Method Wins
The regular method wins when your home expenses are high and your office represents a meaningful percentage of your home. Example: a 300 sqft office in a 1,200 sqft apartment with $30,000 in annual expenses (rent + utilities) generates a $7,500 deduction — five times the simplified method cap. For high-cost urban rentals, the regular method is often dramatically better.
Exclusivity Requirement
The IRS enforces the exclusive-use test strictly. A spare bedroom used as an office that occasionally serves as a guest room does not qualify. A dedicated room with a desk, monitor, and no bed or personal items generally qualifies. Document the space with photos and keep evidence of its business-only use.