Describe the space and its use accurately
Create a simple floor plan, measurements, photographs where helpful, and a written description of the activities performed. Record other business locations and the dates the home use began or changed. IRS guidance generally includes exclusive and regular use requirements, with specific exceptions and additional qualifying rules. A room used for personal activities as well as business requires careful review rather than an automatic percentage allocation.
Collect inputs before choosing a method
Gather relevant housing expenses, records of direct office costs, and the information needed to compare available methods. Separate equipment and ordinary business purchases from the home’s own expenses. Ask the preparer how eligibility, limitations, carryovers, recordkeeping, and future property consequences apply. Choosing a simpler calculation method does not eliminate the need to establish that the use itself qualifies.
Review changes instead of reusing last year’s answer
A move, renovation, change in room use, new outside office, or change in business form can alter the analysis. Preserve prior-year workpapers so the adviser can trace the history. For example, converting a dedicated office to a guest bedroom halfway through the year creates a factual change that should be documented. Keep a practical log of material changes rather than relying on memory at filing time.
- Record measurements, activities, and dates of business use.
- Identify personal use and any other business locations.
- Gather cost records without assuming every housing cost qualifies.
- Compare methods and consequences with a qualified preparer.
Questions to consider
Does a kitchen table used for work qualify automatically?
No. Shared personal use raises eligibility issues under the general exclusive-use rule. Specific exceptions exist, so review the actual facts with a professional.
Is the simplified method always better?
No. Available methods can differ in deduction, limitations, records, and later consequences. Compare them using the current rules and your own facts.
Official sources and further reading
Use this guide to prepare questions and organize records. It does not determine eligibility, establish a professional engagement or guarantee a tax or business outcome.