Taxpayers with home offices must allocate indirect expenses of the home between personal use and home office use.Only expenses allocated to the home office use are deductible.

Question

Quizplus · Accepted Answer

This is true according to IRS regulations. Direct expenses, such as repairs or improvements made solely to the home office, are fully deductible, but indirect expenses, such as mortgage interest, property taxes, and utilities must be allocated based on the percentage of the home used for business purposes. Only the portion allocated to the home office use is deductible.

Taxpayers with Home Offices Must Allocate Indirect Expenses of the Home