You need your business-use percentage to figure out how much of your home-related purchases you can deduct. Why does your business-use percentage matter? Your kitchen table, for instance, wouldn’t cut it. Whatever area you adopt as your workstation, it just has to be used on a regular basis and follow the " exclusive-use rule” - meaning, you only ever use it for work purposes. It has to be used regularly and exclusively for work A desk, rolling chair, and chair mat in your bedroom can absolutely be your workstation. We use the term "workstation" interchangeably with "home office" because it doesn't have to be a dedicated office room. Your workstation is just the part of the house or apartment where you do your freelance or independent contracting work. That would make your business-use percentage 10%. When it comes to the home office deduction, your “business-use percentage” is just the portion of your place taken up by your home office.įor example, pretend your apartment is 800 square feet, and your workstation is 80 square feet. What does your business-use percentage mean? Otherwise, keep reading for more information on your business-use percentage, including what it means for "direct" and "indirect" home office expenses. If you're already solid on the concepts behind the business-use percentage - or if you just want to learn how to use this worksheet - then that's all you really need to know. The Calculator will automatically spit out your business-use percentage in the shaded green box. The size of your at-home workstation in square feet.
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