Home Office Percentage
For example if your home office is 1 10 th of the total square footage of your house then you can deduct 10 of the total cost of some expenses such as rent or mortgage interest homeowners or.
Home office percentage. Next separate and allocate those expenses based on the percentage of the home you use solely for business purposes. Count the number of rooms in your home. Divide the number of rooms used for business by the total number of rooms in the home use this method if the number of rooms is about the same. To do this you divide the square footage of your office space by the total square footage of the home.
You need to determine the square footage of your entire home and the square footage of your office. Divide the area used for your business by the total area of your home. Generally when using the regular method deductions for a home office are based on the percentage of your home devoted to business use. The percentage of office use is 120 square feet 1 200 square feet x 100 10.
Now divide the area of your office by the area of your house. Percentage of your home this method allows you to calculate your home office percentage and then claim the home office deduction. You can claim 20 of your home s expenses if your office takes up 20 of your home s total space. If the office measures 150 square feet for example and the total area of the house is 1 200 square feet your business percentage would be 12 5 150 square feet 1 200 square feet 0 125 12 5 an easier way is acceptable if the rooms in your home are all about the same size.
So if your office space breaks down to 10 of your home s total square footage. The ratio of the two will yield your home office percentage. 225 1 600 0 14 or 14. As an example assume your home has 1 200 square feet and your office is a room that is 10 x 12 feet 120 square feet.
Your home office percentage will be one divided by the number of rooms you have. This decimal represents the percentage of your total home expenses that can be allocated toward.