Can I deduct expenses for a business run out of my home?

If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or a statutory employee. You can claim this deduction only if you use a part of your home regularly and exclusively:

• As your principal place of business for any trade or business.

• As a place to meet or deal with your patients, clients or customers in the normal course of your trade or business.

Expenses you may be able to deduct for business use of your home may include the business portion of:

• real estate taxes

• mortgage interest

• rent

• utilities

• insurance

• depreciation

• painting

• repairs

Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.