April 30, 2019 Small business owners who work from home may qualify for a home office deduction. They have two options for figuring this deduction. The regular method divides expenses of operating the home between personal and business use. Self-employed taxpayers file Form 1040, Schedule C, and compute this deduction on Form 8829. The simplified method, has a rate of $5 a square foot for business use of the home. The maximum deduction is $1,500. Special rules apply for certain business owners: Daycare providers complete a special worksheet, found in Publication 587. Self-employed individuals use Form 1040, Schedule C, Line 30 to claim deduction Farmers claim the deduction on Schedule F, Line 32.
