Step 1 — Business-use %
Business-use %: 10%
Step 2 — Annual home costs
Step 3 — Your tax rate
Total annual home costs$24,000
Actual method (business-use % × costs)$2,400
Simplified method (sq ft × $5, max 300)$1,000
Larger of the two — your deduction$2,400
Illustrative tax saved$576
Confirm with your CPA: W-2 employees generally can't take this after 2017 (mainly self-employed); S-corp owners typically reimburse via an accountable plan. The space must be used regularly and exclusively for business. Depreciation is left off here on purpose — ask your CPA whether to add it.
Educational only — not tax, legal, or financial advice. ScanMyTaxes is a software tool, not a tax preparer or advisor, and does not prepare or file returns. Every figure here is an estimate based on the information you enter; results are not guaranteed and depend on your specific situation. Confirm all strategies, eligibility, and numbers with your own qualified tax professional before acting. Using this tool does not create a client relationship.