Figure A. Can You Deduct Business-Use-of-the-Home Expenses? (See Footnote)
Footnote: Do not use this chart if you use your home for the storage of inventory or product samples, or to operate a daycare facility. See Exceptions to Exclusive Use, earlier, and Day-Care Facility, later.
Summary: This flow chart is used to determine if business use of your home is deductible.
Start
This is the start of the flowchart.
Decision (1)
Is part of your home used in connection with a trade or business?
| IF Yes Continue To Decision (2) |
| IF No Continue To Process (a) |
Process (a)
No deduction
| Continue To End |
Decision (2)
Are you using the part of your home as an employee?
| IF Yes Continue To Process (a) |
| IF No Continue To Decision (3) |
Decision (3)
Is the use regular and exclusive?
| IF Yes Continue To Decision (4) |
| IF No Continue To Process (a) |
Decision (4)
Is it your principal place of business?
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (5) |
Process (b)
Deduction allowed
| Continue To End |
Decision (5)
Do you meet patients, clients, or customers in your home?
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (6) |
Decision (6)
Is it a separate structure?
| IF Yes Continue To Process (b) |
| IF No Continue To Process (a) |
End
This is the end of the flowchart.