Can I deduct my home office if I work from home?

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.

What expenses can be claimed for home office?

Eligible expenses Eligible home office expenses include electricity, heat, water, utilities, home internet access fees (new for 2020), maintenance and minor repairs, and rent. (Commissioned employees can also claim some other expenses).

Is the home office deduction gone?

The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the miscellaneous deduction for home office expenses for tax years 2018-2025. However, if you’re self-employed, you can still claim the home office deduction on Schedule C if your home office meets certain requirements.

Can you claim rent as a home office expense?

Yes. If your office is in an apartment (or in a house you rent), you can deduct the portion of your rent and maintenance costs that relate to the space that’s used for your office.

Can a regular employee claim the Home Office deduction?

Regular employees, including people working from home because of COVID-19, cannot deduct work-from-home expenses or claim the home office deduction. Learn more about how coronavirus will affect your taxes.

Can You claim indirect expenses for Your Home Office?

Indirect expenses are for your entire home, not just your office, so you can only deduct the portion equal to the portion of your home that is your office. If 10% of your home is your office, you can deduct 10% of your home utility bills as a business expense. Unrelated expenses are for your home but don’t affect your business.

How big of an area can you claim for Home Office?

The amount you can claim depends on the actual measurement of the space allocated for business use. For example if your home is 120 square metres and you use 12 square metres for work — so 10 per cent of the total area — you can claim 10 per cent of expenses! You can check out this handy MBIE graphic as a guide.

Can You claim the Home Office deduction in 2021?

For more help filing your taxes in 2021, start with our guide to filing income taxes. You generally need to be self-employed (meaning you pay self-employment tax) or otherwise own a business to claim the home office deduction.