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Home office: simplified or actual?

Two methods, one gate. Answer the gate questions first — a space that fails them gets neither method — then see both deductions figured on your numbers, with the larger one named.

1. Is the space used only for business — never for personal use?
2. Do you use it for business on a regular, ongoing basis — not just occasionally?
3. Which best describes the space?
4. How do you file for this work?
The area used regularly and exclusively for business.
Office ÷ home gives the business-use percentage for the regular method.
One total: rent, or mortgage interest plus property taxes, plus utilities, insurance, and whole-home repairs for the year. The full calculator itemises these line by line.

Your verdict

Answer the questions above

—

Both methods, on your figuresAmount
Simplified method (counted sq ft × $5, at most 300 sq ft)—
Business-use percentage (office ÷ home)—
Regular method — estimate (percentage × expenses entered)—

Open the Home Office Deduction Calculator

Estimate only — not a determination. The regular-method figure is an estimate: an actual claim is figured on Form 8829, which separates expense categories, adds depreciation, and applies a limit tied to business income — none of which this checker models. The simplified figure uses the IRS prescribed rate exactly. This is not tax advice.

Last updated: October 27, 2026

This checker decides two things in order: whether your space passes the gate both home office methods stand behind, and — if it does — which method is larger on your figures. The gate comes first on purpose: a space that fails it gets neither method, however large the numbers would have been. The itemised version of the same comparison lives in the Home Office Deduction Calculator at the end.

How this verdict works

The rules below are the whole logic of the checker — the verdict implements them exactly as stated, and each rule names its primary source.

  • The gate: exclusive and regular use. A deduction for business use of a home requires the portion to be used exclusively and regularly for business. A space used for both business and personal purposes fails the exclusive-use test. (IRS, Simplified option for home office deduction, comparison of methods; Publication 587, Qualifying for a Deduction.)
  • The gate: a qualifying business use. The space must be the principal place of business, or a place where you meet or deal with clients or customers in the normal course of business, or a separate structure used in connection with the business. (Publication 587, same section.) Storage of inventory and daycare use follow their own exceptions, which this checker does not apply — a space kept for those uses needs Publication 587 directly.
  • The gate: not as an employee. Taxpayers can no longer claim a deduction for use of a home office as an employee, because miscellaneous itemized deductions for employee business expenses were eliminated for tax years beginning after 2017 — whichever method is used. (IRS, Simplified option page.)
  • Simplified method. $5 per square foot of home used for business, counting at most 300 square feet — a maximum deduction of $1,500. No expense records are required for the amount, and allowable home-related itemized deductions are claimed in full on Schedule A. (Same IRS page; Revenue Procedure 2013-13.)
  • Regular method (as estimated here). The business-use percentage — office area divided by total home area — applied to the home's actual expenses, with records maintained. An actual claim is figured on Form 8829; this checker's figure is the percentage-times-expenses estimate, before that form's own adjustments. (Same IRS page; Publication 587.)
  • Depreciation differs, exactly. Under the simplified option there is no home depreciation deduction and no later recapture of depreciation for the years it is used. Under the regular method there is a depreciation deduction for the portion used for business, and recapture of depreciation on gain upon sale of the home. (Same IRS page, comparison of methods.)
  • The choice is annual. Either method may be chosen for any taxable year, by using it on the timely filed original return for that year; once chosen for a year it cannot be changed for that same year. (Same IRS page, Selecting a method.)

Rule sources: IRS, “Simplified option for home office deduction,” https://www.irs.gov/businesses/small-businesses-self-employed/simplified-option-for-home-office-deduction ; IRS Publication 587, Business Use of Your Home, https://www.irs.gov/publications/p587 ; IRS Revenue Procedure 2013-13 — checked October 27, 2026.

Reading the verdict

A gate failure is stated plainly and kindly on purpose: it is the most useful answer this page can give, because it arrives before a return is filed on the wrong assumption. When the gate passes, the verdict shows both figures and names the larger one — with the standing caution that the regular figure is an estimate before Form 8829, so a small gap in the regular method's favour may not survive the form, while the simplified figure is exact as computed.

Estimates for planning only. This checker is not tax advice. Eligibility turns on all the facts of the space and the business; verify against Publication 587 or with a qualified tax professional before filing.

Frequently asked questions

What are the two home office methods?

The simplified option: $5 per square foot of home used for business, counting at most 300 square feet, for a maximum deduction of $1,500. The regular method: your business-use percentage — office area divided by total home area — applied to the home’s actual expenses. Both stand behind the same eligibility gate.

What is the gate both methods share?

The space must be used exclusively and regularly for business — a room that doubles for personal use fails the exclusive-use test — and it must be your principal place of business, a place where you meet clients or customers in the normal course of business, or a separate structure used for the business. The full criteria are in IRS Publication 587.

Can a W-2 employee claim the home office deduction?

No, not on a federal return under current law. As the IRS states, taxpayers can no longer claim a deduction for use of a home office as an employee, because miscellaneous itemized deductions for employee business expenses were eliminated for tax years beginning after 2017 — whichever method is used.

How do the methods differ on records and depreciation?

The simplified option needs no expense records and allows no home depreciation deduction — and therefore no later recapture of depreciation for the years it is used. The regular method requires actual expense records to be maintained, includes a depreciation deduction for the business portion, and that depreciation is recaptured on gain when the home is sold.

Do I have to pick the same method every year?

No. You may choose either method for any taxable year, by using that method on your timely filed original return for the year. Once chosen for a year, the method cannot be changed for that same year — but the next year is a fresh choice.