Business Use Of Your Home: What IRS Allows

Business Use Of Your Home: What IRS Allows

IRS Publication 587 covers the business use of your home and explains how to figure and claim the deduction. Publication 587 also covers special rules for daycare providers. The purpose of the publication is to provide information on figuring and claiming the deduction for business use of your home. The term “home” includes a house, apartment, condominium, mobile home, boat or similar property which provides basic living accommodations. It also includes structures on the property, such as unattached garage, studio, barn or greenhouse. However, it does not include any part of your property used exclusively as a hotel, motel, inn or similar establishment.

Qualifying for a deduction gives the requirements for qualifying to deduct expenses for the business use of your home(including special rules for storing inventory or product samples). After you determine you qualify for the deduction, figuring the deduction explains the expenses you can deduct using your actual expenses or the simplified method. The simplified method is an alternative to calculating and substantiating the actual expenses.

Where to deduct explains where a self-employed person or partner will report the deduction. This publication also includes information on the following:

– Selling a home that was used partly for business
– Deducting expenses for furniture and equipment used in your business
– Records you should keep

Business Use of Home Deductions PDF

TaxConnections posts content from the IRS to educate our readers on Federal Tax Rules and Regulations and important updates.

Subscribe to TaxConnections Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.