Home Office Deduction: Simplified vs. Actual Method
In short: Under the IRS simplified method, a US freelancer deducts $5 per square foot of home office, up to 300 square feet, for a maximum of $1,500 per year. The actual expense method deducts the office's percentage of housing costs such as rent or mortgage interest, utilities and insurance, and often produces a bigger deduction. Either way, the space must be used regularly and exclusively for business.
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