30 — Business Use of Home Updated for tax year 2025

What this line means

The deduction for using part of your home regularly and exclusively for business. You have two methods: the simplified method ($5 per square foot, up to 300 square feet, maximum $1,500 deduction) or the regular method (Form 8829, which calculates the business percentage of your actual home expenses — rent/mortgage interest, utilities, insurance, repairs, depreciation). This deduction cannot exceed the tentative profit on line 29.

Does this apply to you?

• You use a room or defined area of your home regularly and exclusively for business
• You do not have a separate office or commercial workspace
• You meet clients, store inventory, or run your business from a dedicated space in your home
• You use a separate structure on your property (detached garage, shed) exclusively for business

Easy to overlook

The simplified method leaves money on the table for larger home offices The simplified method caps at $1,500 (300 sq ft x $5). If your home office is 400 square feet and your actual expenses would yield a $4,000 deduction, the simplified method costs you $2,500 in lost deductions. Run both methods before choosing. The regular method requires more recordkeeping but often produces a significantly larger deduction. ¹ [SOURCE: IRS Publication 587 — Business Use of Your Home]

A home office makes your commute deductible Without a home office, driving from home to your first business stop is nondeductible commuting. With a qualifying home office, your home becomes your principal place of business, and all drives from home to business locations become deductible business miles. For sole proprietors who drive frequently, this indirect benefit of the home office deduction is often worth more than the direct deduction. ² [SOURCE: IRS Publication 587 — commuting exception for home office]

Watch out for this

Claiming the home office deduction for a space that is not used exclusively for business. The IRS requires that the space be used “regularly and exclusively” for business. A dining table where you work during the day and eat dinner at night does not qualify. A spare bedroom that doubles as a guest room does not qualify. The space must be used only for business — no exceptions outside of limited daycare and storage rules.

Related lines on your return

• Form 8829 — Expenses for Business Use of Your Home; the detailed calculation form
• Line 29 — Schedule C — Tentative profit; caps this deduction
• Line 31 — Schedule C — Net profit or loss; line 29 minus this deduction
• Line 9 — Schedule C — Car expenses; home office status changes which miles are deductible