How do you approach claiming deductions for home office expenses? What's one tip for ensuring you meet the IRS requirements?

Question

Working from home has become increasingly common, bringing new considerations for tax deductions. This article presents expert-backed strategies for effectively claiming home office expenses. From establishing a dedicated workspace to leveraging digital tools for expense tracking, these tips will help ensure your claims are both compliant and optimized.

Alex Davis, CPA, CFP · Answer

Two of the biggest mistakes I see with home office deductions cost people thousands every year. As a CPA, I often see people either assume they qualify without meeting IRS requirements or dramatically under-claim expenses because they don't know what actually qualifies. In my practice, I always start by confirming that the space passes the "exclusive and regular use" test, meaning the home office is used only for business.
Most people only think about utilities and rent, but you can also deduct a portion of homeowners insurance, property taxes, repairs, maintenance, and even depreciation. I have my clients track all home-related expenses throughout the year from roof repairs to landscaping, because if it benefits the whole house, a percentage may qualify. My systematic approach: measure and photograph the space, then use a monthly tracker with columns for date, expense type, and amount.
Here's my game-changing tip: print out IRS Form 8829 instructions and highlight every requirement and allowable expense as you complete them. You'll build an audit-proof file while maximizing your deduction with complete confidence.

Allen Kou · Answer

Zinfandel Grille paperwork used to sprawl across the dinner table until our CPA told me the kitchen didn't count--now the old nanny room is 100% office, measured at 128 sq ft out of 1,800. I keep a plain Composition notebook labeled 'Admin Days,' jotting down every vendor call, inventory list, and CRA meeting date; that dated log saved us when the auditor wondered why the phone bill jumped eight months ago. I also hung the second landline on the wall so the line shows up only in QuickBooks under 'Restaurant Ops,' never mixed with family Netflix. Tip: before year-end, walk through the space with your phone's video camera narrating what happens where; the date stamp plus your voice create a two-minute audit armor.

Mark Harrell · Answer

Running Scrubs of Evans for over 16 years with my accounting background, I've learned that timing your home office setup matters more than most realize. I established my dedicated business space in January and documented everything immediately--this gave me a full year of clean records when tax season arrived.
The game-changer for me was separating business phone lines and internet completely from personal use. When I upgraded our store's inventory management system, having that dedicated home office setup with business-only utilities made tracking those technology expenses crystal clear for deductions.
Here's what saved me headaches: I keep a simple monthly log of actual business hours spent in the home office versus total household hours. Instead of guessing percentages, I track real usage--like when I'm doing payroll for our Washington Road location or managing vendor relationships with brands like Maevn and Healing Hands after store hours.
The IRS loves paper trails, so I photograph my home office setup every January and keep receipts in separate business-only files. This documentation approach has made my annual tax preparation smooth and defensible if questions ever arise.

Paul Carlson · Answer

I usually point people toward the simplified home office deduction. The IRS allows $5 per square foot, capped at 300 square feet. It's clean and easy to substantiate. And it saves you from having to track a stack of utility statements. 
The deduction itself may be smaller, but the trade-off here is peace of mind. The fact that the approach is so simple reduces errors. And because home office deductions historically draw IRS attention, it's usually the safer and more strategic choice.
What you need to be mindful of is thorough documentation. Even if you're using this method, you still need to clearly define which space is used exclusively for business. Photos, a rough floor plan, or a brief written record showing square footage and dedicated use can be enough.

Or Moshe · Answer

I installed an inexpensive privacy screen at one end of the living-room loft. I then took a photo with my phone of the exact floor dimensions next to a tape measure and saved it in Dropbox with the filename 'Tevello_HomeOffice_2024.' Whenever a teammate logged Zoom hours or I paid the higher-tier internet bill, I tagged the expense to that picture to keep my spreadsheet hassle-free. A quick verification with my CPA in May confirmed that the square-foot ratio was accurate before I submitted my e-file.

Alexander Liebisch · Answer

I switch Airbnb apartments almost monthly, so I designate the smallest corner, tape a simple rectangle on the floor—usually about 6 ft by 5 ft—and fill it with just my microphone, ring light, and TinderProfile.AI laptop to claim the $150 maximum simplified deduction. My phone's Notes app holds grainy selfies taken from the doorway before I set up, proving exclusive business use from day one; when the Hamburg tax office inquired, I opened my album, and the case was closed in three emails. If paperwork stresses you out, that single recurring reminder to geo-tag the workspace shot is more efficient than saving every utility bill across countries.

Lacey Jarvis · Answer

When claiming home office deductions, I treat it like building a solid business case. I track every expense tied to my workspace, including utilities, internet, office supplies, and the portion of rent or mortgage that covers the office. The IRS wants clear evidence that the space is genuinely used for business, so accuracy is key.
My top tip is to document everything as it happens. I use apps to capture receipts, categorize expenses, and keep records organized. Spending a few minutes each week keeps everything clean, makes tax time stress-free, and ensures I can confidently claim what I am entitled to. For e-commerce entrepreneurs, this habit protects deductions and keeps finances running smoothly.

Doug Van Soest · Answer

In the case of home office deductions, I now know that it is a matter of accuracy and purpose. However, in the case that you are taking up part of your home simply to carry out business, then there is a good reason to deduct it, but it also means that you will have to treat it as a business.
My answer is very simple, be clean, document, and do not take shortcuts. The IRS is not after perfection but what they want is to see things be consistent and reasonable. This is the reason why I make sure that the use of the business is simple to explain and justify in case of need.
It can be a great deduction, as long as you handle it the right way. A little discipline can take you so far that you are on the safe side but you still get the advantage.

8 Tips for Claiming Home Office Expenses

Table of Contents

8 Tips for Claiming Home Office Expenses

Document Exclusive Use for Audit-Proof Deductions

Create a Dedicated Space with Clear Boundaries

Establish a Full-Year Home Office Setup

Opt for Simplified Deduction with Proper Documentation

Use Digital Tools to Track Workspace Expenses

Designate Portable Workspace for Frequent Movers

Treat Home Office Like a Business Case

Maintain Consistency and Reasonableness in Claims

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