Business Use of Home

The Business Use of Home refers to the ability of individuals who run a business from their home to deduct certain expenses on their taxes. This includes costs like a portion of rent or mortgage, utilities, and internet if a part of the home is used exclusively for business activities. To qualify, the space must be used regularly and solely for work-related tasks. This deduction can help reduce taxable income, making it essential for home-based entrepreneurs to understand how to document their expenses correctly and comply with tax regulations.