The IRS has six requirements to help determine whether your home office is eligible for a tax break.
Truly an Remote Office
To qualify to take the credit, you must use part of your home exclusively and regularly as your main place of business and it should be a portion of your home that is separate or removed.
When You Use it
For certain business uses, such as for storage space, rental use, or for a daycare facility you can qualify for the tax for using the property regularly but not exclusively.
Office vs. Home
Usually the amount you can deduct depends on the percentage of your house you used for your business.
Attention Day-Care Providers
If you are a qualified day-care provider or if you are storing business inventory or product samples, there are special rules so be sure to read all the IRS instructions pertaining to these to ensure you are complying.
Use the Right Form
For those who are self-employed be sure to use Form 8829, Expenses for Business Use of Your Home, to calculate your home office deduction and report those deductions on Form 1040 Schedule C.
If you are an employee working from home, you have to meet more conditions in order to qualify for the deduction. For example, the regular and exclusive business use of a home office must be for the convenience of your employer to qualify for the home office deduction.
If you work from home you may be able to deduct the expenses for the business use of your home.