Home office deductions, by square feet
How much is the home office deduction for 250 square feet?
A 250 square foot office deducts $1,250 under the simplified method: $5 per square foot, capped at 300 square feet. Whether actual expenses beat it depends on what your home costs to run.
The breakdown
- How much is the home office deduction for 250 square feet?
- $1,250
- Share of an 1,800 sq ft home
- 13.9%
- Actual-expense deduction at $24k/year home costs
- $3,333
- Gap between the two methods
- $2,083
How the assumptions move it
| $18k home costs | $24k home costs | $36k home costs | |
|---|---|---|---|
| Actual-expense deduction | $2,500 | $3,333 | $5,000 |
Run your own numbers in the interactive calculator: Home office deduction
The formula
Simplified = min(office sq ft, 300) × $5. Actual = annual home costs × (office sq ft ÷ home sq ft). You may pick whichever is larger, per year.
Assumptions on this page
Simplified method: $5 per square foot up to 300. Actual method shown for an 1,800 sq ft home; your share scales with your home's size and real annual costs (rent or mortgage interest, utilities, insurance, repairs). The space must be used regularly and exclusively for business.