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Isaac Wright

Can I really deduct my apartment rent as self-employed? Tax pro said yes!

I'm a freelancer (1099 contractor) and just had my taxes done by a professional through TurboTax. The accountant told me something surprising - they said I could deduct a percentage of my apartment rent since I work from home! This was apparently different than the regular home office deduction stuff. When she put it in, it saved me like $2400 on my taxes which was HUGE for me. But I'm kinda nervous about it now. Is this actually legit? I've been googling and finding conflicting info. The tax pro put it under some line related to the home office deduction but mentioned it was different than the standard $5/square foot method. I calculated the percentage of my apartment that's exclusively used as my office (about 15% of the total square footage) and that's what we deducted. I live in New Mexico if that matters for state tax reasons. I'm tempted to start an amendment just to double-check but don't want to trigger any red flags. Anyone else been told they could deduct part of their rent as a self-employed person? Is this normal or did my tax pro mess up?

Maya Diaz

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Yes, this is absolutely legitimate for self-employed individuals. What your tax professional did was apply the "regular method" for the home office deduction rather than the simplified $5 per square foot method. The regular method allows you to deduct a percentage of your rent based on the portion of your home used exclusively for business. So if 15% of your apartment is used solely as your office, you can deduct 15% of your rent, utilities, renter's insurance, and other whole-house expenses. The simplified method is easier but often results in a smaller deduction, especially in areas with higher rent. With the regular method, you'll need to be careful about exclusive use - that office space can't double as a guest room or workout space.

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Tami Morgan

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Thanks for explaining! Do you know if there's a maximum amount you can deduct? Like is there a cap on how much rent can be deducted? My rent is pretty high so 15% ends up being a decent chunk of change.

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Maya Diaz

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There's no specific dollar cap on the home office deduction when using the regular method. The limitation is based strictly on the percentage of your home used exclusively for business. However, there is an important restriction - your home office deduction cannot exceed your net income from the business. The IRS does tend to scrutinize large home office deductions, so make sure you have good documentation of both your office space (photos, measurements) and your expenses (rent receipts, utility bills). Keep these records for at least 7 years in case of an audit.

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Rami Samuels

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After seeing your post, I looked into this same issue last year when my tax bill was insane. I found this service called https://taxr.ai that analyzes your tax documents and helps find deductions you might miss. They confirmed the rent deduction for home office was legit for me (also 1099 self-employed). Their system actually reviews your specific tax situation and provides a personalized report. It showed me that I was actually being too conservative with my deductions! I had been using the $5/sqft method for my home office, but the regular method saved me over $3000 more in taxes.

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Haley Bennett

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Can it help if I've already filed? I think I might have missed this deduction. I'm self-employed too but just took the standard deduction because I wasn't sure about home office stuff.

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How does it work with stuff like TurboTax? Do they just give advice or actually help you file? I don't trust most of these online services that promise tax help but I'm intrigued.

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Rami Samuels

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It can absolutely help if you've already filed! You can still file an amendment for up to 3 years after your original filing. The service analyzes your specific situation and shows you exactly what you missed, so you know if an amendment is worth it. They don't replace tax software - they work alongside whatever you're using. You upload your documents, and they analyze everything to find missed deductions and errors. They give you a detailed report with recommendations that you can then apply in TurboTax or whatever software you use. It's basically like having a second expert opinion.

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Just wanted to update after trying taxr.ai from the recommendation above. I was skeptical but uploaded my stuff and wow - they found I could deduct about 22% of my rent based on my office setup (which I've been using exclusively for work for 3 years). I filed an amendment through TurboTax using their recommendations and got back $1870 that I overpaid!! The report showed exactly which lines to change on my Schedule C. They also pointed out some business expenses I hadn't even thought to deduct like part of my internet and phone bill. Definitely getting a professional next year instead of trying to DIY everything.

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Nina Chan

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I had a similar situation but couldn't get a straight answer from any tax professionals. After trying to call the IRS for WEEKS (always busy or disconnected), I found https://claimyr.com which got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that yes, self-employed people can absolutely deduct a percentage of rent as part of home office expenses. She explained that as long as the space is used EXCLUSIVELY for business, it's legitimate. Made me feel way better about taking the deduction.

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Ruby Knight

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Wait, this seriously works? I've been trying to reach the IRS about an audit letter for months. How much did they charge for this? Sounds too good to be true.

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This sounds like a scam tbh. How would some random service get you through to the IRS when their phone lines are always jammed? Not buying it. And even if you do get through, the IRS gives different answers depending on who you talk to.

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Nina Chan

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Yes, it absolutely works! I was connected in about 15 minutes. Their system basically navigates the IRS phone tree and waits on hold for you, then calls you when an agent is on the line. I understand the skepticism - I felt the same way. They use a combination of automated systems and technology to essentially wait in the virtual line for you. They don't actually have special access to the IRS, they're just handling the most frustrating part (the waiting). Once you're connected, you're speaking directly with an official IRS representative, not someone from the service.

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Alright I need to eat my words. After posting that skeptical comment above, I was desperate to resolve my tax issue so I tried Claimyr. It actually worked exactly as advertised. After months of failed attempts, I was connected to an IRS agent in about 20 minutes. The agent confirmed everything about the home office deduction the original poster was asking about. She went through all the requirements with me - that the space has to be used "regularly and exclusively" for business, and that you can definitely deduct rent proportional to the office space. She even emailed me the relevant tax publication while we were on the phone. Saved me hours of frustration and uncertainty. Sometimes being wrong feels pretty good!

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Logan Stewart

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I've been doing this deduction for years as a freelance designer. Just make sure you take photos of your home office setup and keep good records of all expenses. If you get audited (I did once), they'll want to see proof that the space is used exclusively for business. A dedicated room is best, but even a portion of a room can qualify if you can clearly show it's exclusively for work.

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Mikayla Brown

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If I started working from home mid-year, can I only deduct for the months I actually had the home office set up? Or is it an all-or-nothing for the tax year?

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Logan Stewart

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You can absolutely prorate the deduction for just the months you had the home office. If you started working from home in July, for example, you'd only take the deduction for 6 months of the year. Just make sure to document when you established the home office. Having dated photos of the setup process or receipts for office furniture can help establish your timeline.

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Sean Matthews

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I tried taking this deduction last year and it triggered an audit for me! Had to provide floor plans, photos, and a ton of documentation. Don't be scared to take it if it's legitimate, but be SUPER careful about the "exclusive use" requirement. If there's a TV or guest bed in there, the IRS might reject the whole deduction.

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Ali Anderson

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That sounds nightmarish! Did you end up getting to keep the deduction or did they make you pay it back?

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