What is the business use of home deduction?

The business use of home deduction is specifically designed for individuals who use part of their home exclusively and regularly for business purposes. This means that if you have a designated area within your home, such as a home office, that you use solely for business activities, you can deduct expenses related to that portion of your home.

The deduction can include a variety of expenses, such as mortgage interest, property taxes, repairs, and utilities, allocated based on the percentage of the home used for business. This reflects the balance between personal living space and the area utilized for business, ensuring that taxpayers can receive tax relief for maintaining their home office.

This answer distinguishes itself by focusing on the specific conditions under which the deduction can be claimed, emphasizing the requirement of regular and exclusive use, which is a crucial element of this tax benefit.