Small Business Tax Dictionary

The home office deduction allows individuals who use part of their home exclusively for business purposes to deduct associated expenses from their taxable income. These expenses may include a portion of rent or mortgage interest, utilities, insurance, and depreciation of furniture and equipment. The deduction aims to alleviate the financial burden of maintaining a workspace within a residence. The rules and eligibility criteria can vary between countries, and proper record-keeping is essential to support the claim.