Home Office Tax Deductions For An Online Business

By | April 25, 2018

Home Office Tax Deductions. Thanks for the visit. Moreover, I hope this article will lead to bettering your tax savvy so you can take full advantage of the tax laws as they pertain to Home Office Tax Deduction in the U.S. During my research on the topic, the rules are clear-cut and overall easy to claim your Business Tax Deductions. 

Affiliate Disclaimer: I get commissions for purchases through links in this post.

Home Office Tax Deductions DEFINED

There are more than 18.3 million to 38 million home-based businesses in the United States according to the U.S. Census, and there are rules you have to apply for a home office tax deduction.  The deductions are really advantageous for the home business entrepreneur. Along with having the comfort of your home as your place of business, the tax deductions offered should further your quest to having success with a home business.

Home Office Tax Deductions

A home-office tax deduction is determined by the depreciation percentage (10%), for the office space, the utilities, and insurance used by the home office.  If a home has 2000 square feet, then the home office has 200 square feet that are deductible.Home Office Tax Deductions what you cannot claimHome Office Tax Deductions what you can claim

To find how much of the home expenses are tax deductible, measure the square footage of the work area, and divide it by the square footage of your home.  All expenses directly related to the home office are fully deductible.  “Business Use of Your Home” Publication 587 by the IRS can be found at http://www.ustreas.gov.

Home Office Tax Deductions example of tax calculations

That will be the percentage of rent, mortgage, insurance, utilities, housekeeping, etc. that you can claim. Moreover, your home office must be dedicated to your business.  Auto maintenance and mileage deductions can be calculated either by standard mileage rate or actual expenses (such as gas and maintenance). Use the method that results in a larger deduction. 

The Deductible Dozen

  • Home office
  • Office supplies
  • Furniture
  • Other equipment
  • Software and subscriptions
  • Mileage
  • Travel, meals, entertainment, and gifts
  • Insurance premiums
  • Retirement contribution
  • Social Security
  • Telephone charges
  • Child labor

Utilities. The water, power, and telephone bills at your office are all 100 percent deductible.  If you have a phone line that has a mix of business and personal calls, highlight the business calls and deduct only the business-related portion of the bill.

Advertising and Marketing. As long as they are directly related to your business, you can deduct the cost of conventional advertising (business card purchases, yellow page ads, and so on).

To figure out how much you can deduct with non-monetary donations, see IRS Publication 561, Determining the Value of Donated Property.

For more information on small business tax deductibles, see the following IRS Publications:


  • It’s helpful to take a photo of your room and keep it with your tax records.
  •  As with any use of a vehicle, keep a record of your business driving as required by the tax law.
  •  You can’t choose to claim depreciation you’re entitled to because you’ll still have to recapture it on a sale, so you might as well deduct depreciation when you can.–  | By Barbara Weltman 

As an affiliate marketer and,  working from home, I can take full advantages of the above tax laws With my Home Tax Deductions.

This is already a low-cost high-profit industry, and with these tax breaks, it’s a win-win. Furthermore, if you are starting a home business, to better your success with a home business, I am inviting you to join my marketing team now!

Also, with our marketing team, you will get intense training to create an online business and all tools for free. It is when you opt-in as a member, that you will learn how to run your online business at its optimum level. Moreover, as a member, you will have access to all that the program offers as shown in my review.

See You On The Other Side

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Thanks for stopping by.  I wish you the best when making your home office tax deductions, and with your online business, may you have blessings and prosperity. Please, let’s communicate, share a comment or question and I will get back in touch with you.           

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About Maurice Jackson

Hello, my name is Maurice Jackson I live and, started my business in Detroit. My intentions are, to help any and every one with affiliate marketing as a home business, become a successful professional. My first career was working for the city of Detroit as an inspector, where I thought I would retire. But life brings change and surprises. I sustained an injury that led to an earlier retirement than I had planned. With that said I reinvented myself in April of 2014 and, became part of an affiliate program. Within the time of my reinvention leading up to the present, I am generating lots of traffic to my website and it grows every day. ROI has been minimal but then again I invested nothing to start. I am at the point of letting my site mature, as I keep writing quality content about it. In this business, you have to pay your dues. Furthermore, I and the rest of our family (become a member and you will see the family side of it) of 109000, including the founders of the program (yes they participate), will see to it that we all will be making a substantial amount of revenue as members

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