{"id":3531,"date":"2021-01-18T15:31:47","date_gmt":"2021-01-18T20:31:47","guid":{"rendered":"https:\/\/falconexpenses.com\/blog\/?p=3531"},"modified":"2022-02-01T10:14:41","modified_gmt":"2022-02-01T15:14:41","slug":"simplified-home-office-deduction","status":"publish","type":"post","link":"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/","title":{"rendered":"IRS Simplified Home Office Deduction (You Can Deduct Your Rent)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd1270c99c4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd1270c99c4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#Are_you_self_employed_and_work_from_home_If_so_you_can_deduct_part_of_your_rent_or_mortgage_Read_here_about_the_IRS_simplified_home_office_deduction_method\" >Are you self employed and work from home? If so, you can deduct part of your rent or mortgage. Read here about the IRS simplified home office deduction method.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#What_is_the_Simplified_Home_Office_Deduction\" >What is the Simplified Home Office Deduction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#How_Do_I_Qualify_for_the_Home_Office_Income_Tax_Deduction\" >How Do I Qualify for the Home Office Income Tax Deduction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#How_Do_I_Calculate_My_Home_Office_Deduction_Using_the_Simplified_Method\" >How Do I Calculate My Home Office Deduction Using the Simplified Method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#Resources\" >Resources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/falconexpenses.com\/blog\/simplified-home-office-deduction\/#About_Falcon_Expenses\" >About Falcon Expenses<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\" id=\"are-you-self-employed-and-work-from-home-if-so-you-can-deduct-part-of-your-rent-or-mortgage-read-here-about-the-irs-simplified-home-office-deduction-method\"><span class=\"ez-toc-section\" id=\"Are_you_self_employed_and_work_from_home_If_so_you_can_deduct_part_of_your_rent_or_mortgage_Read_here_about_the_IRS_simplified_home_office_deduction_method\"><\/span>Are you self employed and work from home? If so, you can deduct part of your rent or mortgage. Read here about the IRS simplified home office deduction method.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Simplified-Home-Office-Deduction-Method.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"560\" height=\"315\" src=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Simplified-Home-Office-Deduction-Method.jpg\" alt=\"\" class=\"wp-image-3543\" srcset=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Simplified-Home-Office-Deduction-Method.jpg 560w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/01\/Simplified-Home-Office-Deduction-Method-300x169.jpg 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/a><figcaption><strong>Do you work from home? If so, read on to learn how to deduct part of your rent (or mortgage) from your taxes so that you maximize your take-home income.<\/strong><\/figcaption><\/figure>\n\n\n\n<p>If you&#8217;re self-employed, you&#8217;re likely always interested in ways to maximize your tax deductions. The more you&#8217;re able to deduct the more income you take home. In this article, we go over how to use the IRS simplified home office deduction method. This is one of two methods provided by the IRS for calculating your home office tax deduction. For a complete set of resources about self-employment and the home office deductions methods scroll to the bottom of this article. Continue reading for how to calculate your simplified home office deduction.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Self-employed individuals include 1099 workers, freelancers, independent contractors, consultants, or any other type of independently employed individual. This also includes small business owners.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Many self-employed individuals, 1099 workers, freelancers, etc., work from home. However, not all are aware they can deduct part of their rent (or mortgage, if you own your home!) from their gross taxable income. It&#8217;s time to learn about the simplified home office tax deduction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-the-simplified-home-office-deduction\"><span class=\"ez-toc-section\" id=\"What_is_the_Simplified_Home_Office_Deduction\"><\/span>What is the Simplified Home Office Deduction?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The simplified home office deduction is a method to calculate your home office tax deduction. The IRS designed this method to make it easier, and faster for taxpayers to calculate their home office deductions. Instead of going through the lengthy process of itemizing and calculating each individual home office expense, with the simplified home office deduction all that. you have to do is use one flat rate. The simplified home office deduction method became available since the tax year starting Jan 1st, 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-i-qualify-for-the-home-office-income-tax-deduction\"><span class=\"ez-toc-section\" id=\"How_Do_I_Qualify_for_the_Home_Office_Income_Tax_Deduction\"><\/span>How Do I Qualify for the Home Office Income Tax Deduction?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IRS specifies two requirements to meet for you to take the home office deduction if you work from home. These two requirements are:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>The area in your home dedicated to your home office&nbsp;is <strong>regularly&nbsp;<\/strong>and&nbsp;<strong>exclusively&nbsp;<\/strong>for your home office. For example, if you regularly use your a spare room in your home for your office, and you exclusively use it for work, you can take the home office tax deduction.<\/li><li>Your home office is the principle place for your business. You likely qualify for the self employed home office tax deduction if you do business at another location but use your home office substantially more.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-i-calculate-my-home-office-deduction-using-the-simplified-method\"><span class=\"ez-toc-section\" id=\"How_Do_I_Calculate_My_Home_Office_Deduction_Using_the_Simplified_Method\"><\/span>How Do I Calculate My Home Office Deduction Using the Simplified Method?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The simplified method is the easiest method to use to calculate your home office tax deduction. To use this method you multiply a prescribed rate by the allowable square footage of your home office. That means all you need to do is make one calculation to calculate your home office expense. With the regular method, you make an individual calculation for each home office expense item.<\/p>\n\n\n\n<p>The standard deduction amount used to calculate your home office deduction when using the simplified home office deduction method is $5 per square foot. That means $5 per square foot of the amount of your home used for business. The maximum amount of square feet you are allowed to use in this deduction is 300 square feet. For example, if your home office is 300 square feet, then your annual home office tax deduction will be: <\/p>\n\n\n\n<p>300 square feet x $5 per square foot = $1,500 USD<\/p>\n\n\n\n<p>If your home office is 350 square feet your home office tax deduction would be the same amount, $1,500 USD. This is because 300 feet is the maximum amount of square feet you&#8217;re allowed to calculate your home office tax deduction with the simplified home office deduction method. Therefore, in this case, you don&#8217;t add the extra 50 square feet into your calculation using the simplified method.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"resources\"><span class=\"ez-toc-section\" id=\"Resources\"><\/span>Resources<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Read this article for information about the Actual Expense Tax Deduction Method (aka the Standard Method or Regular Method for calculating your home office deduction, <a href=\"https:\/\/falconexpenses.com\/blog\/self-employed-home-office-tax-deduction\/\">Home Office Tax Deduction for Self Employed<\/a>.<\/p>\n\n\n\n<p>Read this article for a complete list of tax deductions available to you if you&#8217;re self-employed, <a href=\"https:\/\/falconexpenses.com\/blog\/self-employment-tax-deductions\/\">Self Employment Tax Deductions<\/a>.<\/p>\n\n\n\n<p>IRS: <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/simplified-option-for-home-office-deduction\" target=\"_blank\" rel=\"noreferrer noopener\">Simplified Options for Home Office Tax Deduction<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"about-falcon-expenses\"><span class=\"ez-toc-section\" id=\"About_Falcon_Expenses\"><\/span>About Falcon Expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Falcon Expenses is a top-rated expense and <a href=\"https:\/\/falconexpenses.com\/blog\/how-to-use-falcon-expenses-gps-mileage-expense-tracker\/\">mileage tracker app<\/a> for self-employed and small businesses. Falcon is great for business travels and remote workers. <br><br><strong><em>On average, Falcon customers record $6,600, in annual tax deductions. Get started today. <\/em><\/strong><br><br>The longer you wait, the more tax deductions you miss.<\/p>\n\n\n\n<p>Automatically track mileage expenses and expenses, keep an <a href=\"https:\/\/falconexpenses.com\/blog\/how-to-keep-an-odometer-log-of-business-mileage\/\">odometer log<\/a>, <a href=\"https:\/\/falconexpenses.com\/blog\/business-expense-receipt-management\/\">receipt vault<\/a> and log billable hours. Quickly organize expenses by time period, project, or client. Easily create expense reports and <a href=\"https:\/\/falconexpenses.com\/blog\/mileage-expense-log-requirements\/\">mileage logs<\/a> with your expense data to email to anyone in PDF or spreadsheet formats, all from your phone. Falcon&#8217;s <a href=\"https:\/\/falconexpenses.com\/blog\/falcon-expenses-expense-report-template\/\">expense report template<\/a> is IRS compliant. Use for keeping track of tax deductions, mileage logs, time logs, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, delivery drivers, couriers, business travelers, truckers, and more.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Are you self employed and work from home? If so, you can deduct part of your rent or mortgage. Read&#46;&#46;&#46;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":3545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1974,18],"tags":[2169,2170,2096,2172,2171],"class_list":["post-3531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-employed","category-taxes","tag-home-office-deduction","tag-home-office-tax-deduction","tag-self-employed-tax-deductions","tag-simplified-home-office-deduction","tag-simplified-home-office-tax-deduction"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/3531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/comments?post=3531"}],"version-history":[{"count":0,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/3531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media\/3545"}],"wp:attachment":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media?parent=3531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/categories?post=3531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/tags?post=3531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}