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Best Deduction
$3,107
$3,107
Best Deduction
Simplified
$1,000
Tax Savings
$683
Business %
13.33%
Summary
The Regular method gives the best home office deduction of $3,107, saving $683 in taxes.
The simplified method gives you $1,000 ($5 × 200 sq ft). The regular method gives $3,107 (13.33% of actual expenses).
The Regular method saves you more: $3,107 deduction, which reduces your tax by $683.
Your home office is 13.33% of your total home area. Only exclusively-used space qualifies.
W-2 employees generally cannot claim the home office deduction since the Tax Cuts and Jobs Act. Only self-employed individuals qualify.
Simplified Method$1,000
Regular Method$3,107
Regular Method Expense Breakdown
6 rows
| Expense | Amount |
|---|---|
| Rent/Mortgage | $2,400 |
| Utilities | $480 |
| Insurance | $160 |
| Repairs | $67 |
| Depreciation | $0 |
| Regular Total | $3,107 |
Estimate based on IRS home office deduction rules. The space must be used regularly and exclusively for business. Not tax advice.