The simplified method for 2016 allows a $5-per-square-foot deduction up to a maximum of 300 square feet. Therefore, for our 120-square-foot office in the above example, the simplified method would allow a deduction of 120 x $5 $600, which is significantly less than the calculated method allowed.
For 2018 the prescribed rate is $5 per square foot with a maximum of 300 square feet. The space must still be dedicated to the business activity as described above. With the simplified method, if the office measures 150 square feet, for example, then the deduction would be $750 (150 x $5).
If you work at home, the IRS allows you to deduct the portion of your entire home- related expenses arising from your use of a home office from your taxable .
Home Office Deduction Calculator
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