Home Office Definition

What is a home office?

A home office is a designated space in a person’s residence for official business purposes. It provides space for those who are self-employed or working remotely for an employer.

The IRS allows qualified taxpayers to claim a home office on their tax return and to deduct certain home expenses on their tax return.

Key points to remember

  • Home offices provide work space from home for the self-employed or for an employer.
  • A working-from-home employee can often manage their work schedule, and employers are often open to time flexibility.
  • To qualify for the head office deduction, taxpayers must exclusively and regularly use part of their home or a separate structure on their property as their principal place of business.
  • Employees of a business are not eligible for the home office deduction.

How a home office works

Home offices are set up by people who Work at home, whether they are self-employed or telecommuting for an employer. Home office essentials often include a desk, chair, computer or laptop, internet capability, and adequate software like Zoom to connect with colleagues who are also working remotely.