Home-Office Deduction (Simplified vs Actual)
Simplified method ($5/ft^2 up to 300 ft^2 / $1,500 cap) vs actual method (office-use percent x home expenses).
Example
You enter
- Home-office area (ft²) 200
- Total home area (ft²) 2000
- Total home expenses ($/yr) 24000
You get
- Simplified method 1000
- Actual method 2400
- Recommended (higher) 2400
- Office use (%) 10
Checked against published worked examples from: IRS.
Details, formula, and sources
ScopeSimplified method ($5/ft^2 up to 300 ft^2 / $1,500 cap) vs actual method (office-use percent x home expenses), and the higher of the two. IRS Pub 587 / Form 8829.
Formula or tableSimplified method = min(office_ft2, 300) * $5, capped at $1,500. Actual method = (office_ft2 / home_ft2) * total_home_expenses. Recommended = max(simplified, actual).
Source and editionIRS Publication 587 (Business Use of Your Home) and Form 8829 by name; simplified rate per Rev. Proc. 2013-13.
Free accessFree at irs.gov.
What governsEstimate only. Tax law changes. Confirm with the current IRS publication or a licensed CPA before filing.
API field namesoffice_ft2, home_ft2, total_home_expenses, simplified_deduction, actual_deduction, recommended_deduction, office_use_pct
- Simplified rate / cap $5 per ft^2, 300 ft^2 max, $1,500 capIRS Rev. Proc. 2013-13
- Regular and exclusive use the office must be used regularly and exclusively for businessIRC 280A(c)(1)