Home Office Deduction Calculator

The following two-part calculator will help you estimate the amount of your home office deduction. It is not intended as a substitute for the assistance of a tax professional. However, it will assist you in organizing the information that relates to your home office deduction, and in understanding the associated tax concepts. This should reduce the amount of time and work that a tax professional must expend, and might even reduce the bill you receive for these services.

If you have any question regarding a particular expense, click on that item for an explanation. Remember that taxes are computed on an annual basis and that amounts entered relate to this tax year, unless otherwise stated.

Every question on this page MUST be answered.

Don't use dollar signs or commas in the amounts you enter.

Note that the form has many responses filled in with a "0." DON'T delete any of these UNLESS you replace it with a number. Completely blank answer boxes will cause your browser to generate an error message.

<< Back to Page 1

Based upon the information you provided, we will compute your estimated home office deduction using a business use percentage of %. If you supplied information regarding both the number of rooms in, and the area of your home, this represents the method that yields the largest deduction. Otherwise, it reflects whichever response you provided to Part 1, Question 3.

Your net business income from your home-based business is $. This is the maximum amount that you can deduct in the current year. If the deduction exceeds this amount, the deduction is limited to that amount, and the remainder may be carried over and used in subsequent years when you have additional net income from your home-based business.

Now, please provide the following information regarding the expenses you incurred relating to your home office. If an expense pertains only to the office portion, enter it in the "Office" column. It it pertains to the entire house, including the office, enter it in the "Home" column. Please note that you may have to enter amounts in both the "Office" and the "Home" columns with respect to certain expense items. For example, if you painted your entire home, there would be decorating entries for both home and office.

<< Back to Page 1

Based upon the information you provided, we will compute your estimated home office deduction using a business use percentage of %. If you supplied information regarding both the number of rooms in, and the area of your home, this represents whichever yields the larger deduction. Otherwise, it reflects whichever response you provided to Part 1, Question 3.

Your net business income from your home-based business is $. This is the maximum amount that you can deduct in the current year. If the deduction exceeds this amount the deduction is limited to that amount, and the remainder may be carried over and used in subsequent years when you have additional net income from your home-based business.

Now, please provide the following information regarding the expenses you incurred relating to your home office. If an expense pertains only to the office portion, enter it in the "Office" column. It it pertains to the entire house, including the office, enter it in the "Home" column. Please note that you may have to enter amounts in both the "Office" and the "Home" columns with respect to certain expense items. For example, if you painted your entire home, there would be decorating entries for both home and office.

<< Back to Page 2

Thank you for using our home office deduction calculator. We appreciate the chance to provide you with an estimate of the tax savings that might result from operating a business out of your home. Please remember that you must satisfy the prerequisites for claiming deductions relating to a home-based business, and we strongly suggest that you review those requirements if you haven't done so already.

Your estimated home office expense deduction is $. Here's how we came up with this estimate. The information you provided in Part 1 established the following:

• Your net income from your home business is $.
• You use % of your home exclusively for business purposes.

Here's how the information you supplied in Part 2 was used to estimate each of the deduction's components: