Home Office Expense

DEFINITION of 'Home Office Expense'

Expenses incurred from the operation of a business or the performance of employment-related activities within your residence. To be able to deduct home office expenses, an individual must spend at least half his or her time working at home.

BREAKING DOWN 'Home Office Expense'

Individuals are entitled to deduct some housing expenses such as utilities, mortgage interest and property taxes. Anything that is used exclusively for the home office can be fully deducted, including supplies, an extra fax and phone line, and computer equipment. The amount of housing expenses that someone can deduct is restricted to the amount of business income they earn.

RELATED TERMS
  1. Principal Place Of Business

    The primary location where a taxpayer's business is performed. ...
  2. Home Office

    An office located inside the taxpayer's home that serves as the ...
  3. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  4. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
  5. Expense

    1. The economic costs that a business incurs through its operations ...
  6. Ordinary And Necessary Expenses ...

    Expenses incurred by individuals for their business or primary ...
Related Articles
  1. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  2. Entrepreneurship

    Top 4 Financial Jobs You Can Do From Home

    You don't have to go to an office to make a great salary in the financial sector. Here are the top four highest paying financial jobs you can do from home.
  3. Taxes

    How To Qualify For The Home-Office Tax Deduction

    Homebodies can save big on their tax bill. Learn how to get in on the action.
  4. Options & Futures

    How Much To Save To Become A Millionaire

    With a little discipline and the help of some powerful savings vehicles, anyone can hit this mark.
  5. Brokers

    Top Tax Deductions For Brokers

    If you are paying out of pocket, you can make your business expenses work for you at tax time.
  6. Entrepreneurship

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  7. Entrepreneurship

    Creating A Home Business Work Space

    Your work environment can make or break your career as an entrepreneur.
  8. Home & Auto

    5 Reasons Not to Use Your Home Equity Line of Credit

    Find out why taking a loan from a home equity line of credit may be a bad idea, and why you should consider alternatives.
  9. Mutual Funds & ETFs

    Trends in Capital Flows: U.S. Equities

    Analyze asset flow data for U.S. equity mutual funds and ETFs from 2014 and 2015 to identify changes in demand, investor sentiment and outlook.
  10. Credit & Loans

    Mortgage Refinance: Brick-and-Mortar vs. Online Lender

    Understand why refinancing your mortgage might benefit you, and compare using an online lender to working with a brick-and-mortar bank.
RELATED FAQS
  1. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
  2. What's the difference between short sales and foreclosures?

    Understand the difference between a short sale and a foreclosure; both result in the loss of a home, either through a sale ... Read Answer >>
  3. How do you use the FNMA selling guide?

    Learn about Fannie Mae Selling Guide and find out details about how its parts provide support to the business relationship ... Read Answer >>
  4. What is the average credit score for new homebuyers? (ELLI)

    Learn the average FICO score of approved and denied home loan applications, and find out how your credit score measures up ... Read Answer >>
  5. Is an adjustable rate mortgage (ARM) safe?

    Learn why an adjustable rate mortgage (ARM) can be a safe option as long as the borrower is familiar with the underlying ... Read Answer >>
  6. Do FHA loans require escrow accounts?

    Understand how FHA mortgages require escrow accounts for property taxes, homeowners insurance and mortgage insurance premiums ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center