IRS Advice on Business Use of Your Home

1. The business expenses that you can deduct even if you did not use your home for business, such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on IRS Schedule A (IRS Form 1040).
2. The business expenses that relate to the business activity in the home — e.g. business phone, supplies, and depreciation on equipment — but not to the use of the home itself.

Do not include in (from point 2 above) your deduction for one-half of your self-employment tax.

Use IRS Form 8829, Expenses for Business Use of Your Home, to figure your deduction.

More information.
For more information on deducting expenses for the business use of your home, see IRS Publication 587.

Other Expenses You Can Deduct.
See IRS Publication 535 to find out whether these are deductible items for you.

• Advertising
• Clean-fuel vehicles and refueling property
• Donations to business organizations
• Education expenses
• Environmental cleanup costs
• Impairment-related expenses
• Interview expense allowances
• Licenses and regulatory fees
• Moving machinery
• Outplacement services
• Penalties and fines you pay for late performance or nonperformance of a contract
• Repairs that keep your property in normal efficient operating condition
• Repayments of income
• Subscriptions to trade or professional publications
• Supplies and materials
• Utilities