Can I claim the home office deduction if I rent?

Yes. The deduction is available to renters and owners alike. Under the regular method, renters apply the business-use percentage to rent and other home expenses — and have no depreciation, which also means no recapture concern.

Can I use my kitchen table as a home office?

Unlikely. The exclusive-use rule means no personal or family use of the space. A kitchen table or a guest room both fail the test. A permanent desk in a dedicated corner used solely for business may qualify for that portion — document it carefully.

What happens to depreciation when I sell my home?

If you used the regular method and claimed depreciation, depreciation recapture applies at sale (taxed as ordinary income, up to 25%). The simplified method avoids this. The Section 121 principal-residence gain exclusion still applies to the non-office portion.

Can I switch between the simplified and regular methods year to year?

Yes. You choose a method each tax year and can change it annually — the choice is not locked in. You cannot use both methods for the same home in the same year, and any depreciation already claimed under the regular method still carries a recapture consequence at sale, but the year-to-year choice itself is flexible.

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Individual Tax Preparation

The Home Office Deduction: Rules, Methods, and Common Mistakes

The home office deduction is legitimate and valuable for self-employed taxpayers who qualify — but the exclusive-use rule and the choice between the simplified and regular methods trip up many filers.

SMAART Tax Team

February 25, 2026

5 min read

|Reviewed by Anthony Gonzalez, Enrolled Agent