Home Office Deduction

Overview

Calculates the home office deduction (Form 8829 or simplified method) for self-employed individuals who use part of their home regularly and exclusively for business. Two methods are available: the simplified method ($5 per square foot) and the actual expense method (percentage of real housing costs).

Wilson Tools Used

• transaction_search — Find mortgage/rent, utilities, insurance, and repair transactions
• spending_summary — Summarize housing-related expenses for the tax year
• export_transactions — Export housing expenses for Form 8829 or CPA review

Workflow

1. Confirm the home office qualifies: the space must be used regularly and exclusively for business.
2. Ask for the square footage of the office and the total square footage of the home.
3. Calculate the business-use percentage: office_sq_ft / total_home_sq_ft.
4. Choose a method: