what is a home office expense 
home office expenses are expenses incurred from the operation of a business or the performance of employment related activities within a primary residence understanding home office expenseshome office expenses allow individuals to deduct some housing expenses such as utilities interest paid towards the property s mortgage and property taxes on their annual tax return 1 the irs provides the details for the rules on home office deductions in publication 587 expenses incurred by a business you conduct in your home are the basis for home office deductions that can lower your tax bill if you are self employed any services or utilities that are used exclusively for the business purposes can be fully deducted this includes offices supplies phone lines and computer equipment the amount of deductions permitted will depend on several factors including how a homeowner files their return and their earnings but most will be able to claim several items as expenses as long as they are incurred during the normal course of business 1 a home office will only qualify for home office deductions if it meets the following criteria 2 the rule of thumb is exclusive and regular the place you designate as your home office has to be used exclusively and regularly as a home office in the words of the irs the space does not need to be marked off by a permanent partition you do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes 3 if you have a corner of your house with a desk that you only use to transact business that qualifies as a home office space but if you conduct your business on a laptop while sitting on your couch next to a family member who is watching tv you cannot claim the couch as a home office 