The Home Office Deduction is available to sole proprietors that did not have a W-2 job during 2023 and own or rent their home. In order to calculate how much can be written off as a business cost, we ask what percentage of your home is exclusively used for business.
Home office expenses include utilities, repairs & maintenance, homeowner's or renter's insurance, rent of your home, and other expenses related to your home.
Please keep in mind that the "Home Office Deduction" is separate from other office business expenses that we are tracking in Heard, such as office supplies or furniture. We ask additional questions around home office expenses as part of our information gathering tax process, as these expenses often go on a personal card and are therefore not trackable in Heard.