Taxpayers with home offices and who use the actual expense method for computing home office expenses must allocate indirect expenses of the home between personal use and home office use. Only expenses allocated to the home office use are deductible for AGI.

Question

Quizplus · Accepted Answer

This is correct as per IRS guidelines for claiming home office expenses using actual expenses method. Only the expenses that are directly related to the home office use and those that are allocated to it can be claimed as deductions for AGI. Indirect expenses of the home may include mortgage interest, property taxes, utilities, and maintenance, among others. These indirect expenses must be prorated between personal use and home office use, and only the portion related to the home office use can be claimed as a deduction.

Taxpayers with Home Offices and Who Use the Actual Expense