IRS Advice on Business Use of Your Home

To deduct expenses related to the part of your home used for business, the IRS advises that you must meet specific requirements. Even then, your deduction may be limited. To qualify to claim expenses

1. Your use of the business part of your home must be:

• Exclusive (however, see Exceptions to Exclusive Use, later),
• Regular,
• For your business, and

2. The business part of your home must be one of the following:

• Your principal place of business (defined later),
• A place where you meet or deal with patients, clients, or customers in the normal course of your business, or
• A separate structure (not attached to your home) you use in connection with your business.

Exclusive use.
To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. The area used for business can be a room or other separately identifiable space. The space does not need to be marked off by a permanent partition. However, you do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes.