The concept of a home office is now both widespread and commonplace, thanks mainly to the exponential rise in communication technology and the pandemic. But this practice of working from home and using a part of the home as the office is by no means a new one, simply because of its convenience. Not having to leave home to go to work or conduct one’s business is a convenience many have enjoyed over time.  Here is a brief discussion of the criteria one must adhere to if one claims tax deductions for home office use.

Home-related expenses such as mortgage interest, utilities, property taxes, or depreciation cannot be deducted as business expenses. However, some expenses may be deducted for using a part of your home when specific criteria are met. Some of these essential criteria include regular and exclusive use of a part of your home as your principal place of business or regular and complete use of a part of your home as a place where you meet customers, clients, patients, etc. Note that the criteria specifically state “exclusive” and “regular.” Once you have qualified for these deductions, the next stage is calculating the amounts that can be deducted. Here the option of going with actual or opting for the simplified calculation method is available to you.