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.

  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. Ordinary And Necessary Expenses ...

    Expenses incurred by individuals for their business or primary ...
  6. Expense

    1. The economic costs that a business incurs through its operations ...
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