list of steps to calculating a home office expense deduction

If you will show a profit this year in your business, then you can qualify for a home office deduction when figuring your taxes.  Many business owners have someone else doing their taxes for them, but if you are doing them yourself, then this Home Office Expense Worksheet will help you figure out how much you can deduct from your profit.

Here are the steps involved.

list of steps to calculating a home office expense deduction |

photo by baliboro
  • Calculate the total number of square feet in your home.
  • Calculate the total number of square feet used for your business (length x width).
  • Divide the square feet for the business space by the total home square feet.
  • List the total you spent on mortgage interest.
  • Calculate your total utilities for the year.
  • Calculate the total real estate taxes and insurance.
  • Add those 3 things together.
  • Multiply that total by the percentage of your home used for business.
  • Add maintenance and repairs spent on the business portion of your home.
  • Add the depreciation on the business portion of your home (using the MACRS 39 year method).
  • Find the total allowable home office expense deduction for your taxes.



5 responses to “list of steps to calculating a home office expense deduction”

  1. Eva says:

    I twittered your message. Hope I did it right. I love lists. I may be trying too much technology at once here lately. Your lists are not a problem to use. They are Great.

  2. Linda says:

    I just started gathering my stuff for taxes yesterday and didn’t have the sligfhtest idea how to break this down.Thanks and I could realy use the Business e- Planer .

  3. Paula McGuire says:

    Home Office deductions are HUGE, and lots of people don’t understand them. Thanks for breaking it down to simple steps.

  4. Thanks for the check list for the home office deduction. And I really need the Business ePlanner!!
    .-= Hillary Jordan´s last blog ..L-O-V-E is in the air! =-.

  5. Jessica says:

    I can’t believe I forgot to comment yesterday! And I so need help with menu planning. Is the list available as a download as well?

    This is a great giveaway too! Thanks!
    .-= Jessica´s last blog ..BBQ Madness =-.


So you can get your list on.

Reset Password

Register Today

Sign up for a free account to give ListPlanit a try.

Or click here to sign up for unlimited access to all of our lists for just $5 / month.


No problemo.

Enter your email and we'll send along password reset instructions.