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Maximizing the Office in Home Deduction: Eligibility, Actual vs. Simplified Method, Recapture, Recent Cases

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, July 15, 2021

Recorded event now available

or call 1-800-926-7926

This course will provide a comprehensive overview of the office in the home deduction. Our panel of individual income tax veterans will discuss the methods available, including deducting actual expenses and the simplified method, unusual office in home scenarios, and recent challenges to this valuable deduction.


With more people working from home, questions abound about the home office deduction. This deduction allows taxpayers to expense usually nondeductible costs, including utilities, homeowners' insurance, pest control, and more. Once thought to be an audit trigger, this deduction became mainstream after Commissioner v. Soliman, 506 U.S. 168 (1993).

In 2013, the simplified option for the home office deduction was added, leaving preparers with more to consider. The simplified method allows a $5 deduction per square foot of the home used for business up to a maximum of 300 square feet. Many practitioners opt for this method because it saves substantial tax preparation time. Often though, deducting actual expenses saves the taxpayer substantially more in taxes.

Complications that tax practitioners must address include recapturing depreciation when the home is sold if actual expenses have been deducted, operating more than one business from home, and determining exactly which residential expenses are allowed deductions. Understanding how to maximize this deduction is key for tax advisers working with small businesses.

Listen as our panel of income tax experts explains who is eligible for this tax saving deduction, how the deduction is calculated, what is and is not a qualified expense, and unique considerations surrounding this worthwhile deduction.



  1. Home office deduction: an overview
  2. Eligibility
  3. What constitutes an office?
  4. Actual expenses
  5. Square footage methods
  6. Recapture
  7. Recent cases
  8. Best practices


The panel will review these and other key issues:

  • What is considered a dwelling eligible for the home office deduction?
  • When is a taxpayer eligible to deduct home office expenses?
  • When could deducting actual expenses be more beneficial for a taxpayer?
  • What specific expenses are eligible and not eligible for the home office deduction?
  • How have the courts responded in recent home office deduction cases?


Coppinger, Terence
Terence Coppinger

Cedar Point Accounting

Mr. Coppinger has been advising clients in the areas of tax information reporting and IRS practice and procedure for...  |  Read More

Watson, Jason
Jason Watson, CPA

Founding Partner

Mr. Watson advises small business owners in creating a map for the future. His focus is on S corporations,...  |  Read More

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