How the home office deduction works for self-employed workers

The IRS home office deduction is generally for taxpayers who use part of their home for a trade or business and meet specific business-use requirements.

For many Cadus users, that means a freelancer, contractor, consultant, driver, photographer, cleaner, landscaper, real estate agent, or other self-employed worker who uses a home space for business records, client work, scheduling, invoicing, or operations.

A common requirement is that the space is used exclusively and regularly for business. A spare room used only as an office is easier to support than a kitchen table used for both business and personal activities.

IRS Publication 587 describes exceptions and special cases, including inventory storage, daycare facilities, and separate structures, so users should check the official guidance or a tax professional for edge cases.

A home office may qualify when it is used as the principal place of business, or as a place to meet or deal with clients, patients, or customers in the normal course of business.

A separate structure, such as a detached studio or workshop, can also qualify if it is used exclusively and regularly in connection with the trade or business.

The simplified method uses a standard rate per square foot for qualified business use of the home, up to the IRS square-foot limit.

The regular method uses actual expenses and a business-use percentage. That can include direct expenses for the business space and indirect expenses for the whole home, subject to IRS limits.

Cadus does not provide tax advice, but it can help users keep receipts, expense categories, notes, income, mileage, invoices, and reports organized before they calculate deductions or talk to an accountant.

Better records make it easier to understand which expenses belong in Cadus, which home-use details belong in tax software or Form 8829, and which questions should go to a qualified tax professional.