Home Office Deduction 2025: Simplified vs Regular Method

Two Methods

Simplified: $5 per square foot, up to 300 sq ft ($1,500 max). Easy but limited.
Regular: Calculate actual expenses (mortgage/rent, utilities, insurance, repairs) proportional to your office space percentage. More paperwork but often a larger deduction.

Exclusive Use Requirement

The space must be used regularly and exclusively for business. A desk in the corner of your bedroom qualifies. A dining table you also use for meals does not.

Which Method Saves More?

If your home expenses exceed $5/sq ft, the regular method wins. For a 200 sq ft office in a home with $3,000/month total expenses, the regular method yields $7,200 vs $1,000 simplified.