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Home Office Deduction Internal Revenue Service By being careful in how you structure the relationship between yourself and your S corporation, there's a way you can benefit from the expenses of having a home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business.
How To Qualify For The Home-Office Tax Deduction Why home-office deductions can be a problem for S corporations Self-employed individuals whose businesses are set up as sole proprietorships or business entities treated as partnerships for tax purposes routinely use the home-office deduction for expenses related to the business use of their homes. However, not all employees are able to write off their home-office expenses. This article will give you four tests that you must pass before you can deduct your home-office expenses.