Can I write off rent for WFH office space without having a formal lease?

So I came across this TikTok the other day (yeah I know, not exactly tax advice central) claiming that if you have a dedicated home office space and work from home, you can deduct that percentage of your total rent on your taxes. My situation is a bit tricky though. I'm living with 5 roommates in a house where we're all month-to-month without an actual lease agreement. The total rent for the house is $2400, and I pay $500 for my room, which is also where I work full-time. Since my bedroom is my dedicated workspace (literally where I spend 40+ hours a week working), I was thinking I could write off my entire $500 portion of the rent. But I'm worried that without a formal lease, I won't be able to prove how much rent I actually pay if I get audited or something. Am I completely off base here? Is this one of those too-good-to-be-true TikTok myths, or is there something legitimate about home office deductions even in my weird rental situation? Anyone dealt with something similar or know the actual rules? Thanks for any advice!

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18 comments

Eli Wang

•8M

While home office deductions can be legitimate, there are specific requirements you need to meet. First, it's important to understand that since the Tax Cuts and Jobs Act of 2017, employees (W-2 workers) can no longer claim home office deductions - this is only available for self-employed individuals. If you're self-employed, you need to use that space "regularly and exclusively" for work. That means if your bedroom doubles as your office, you can only deduct the specific portion used for work. For example, if your desk and work equipment take up 30% of your bedroom, you might be able to deduct 30% of your $500 rent (not the entire amount). Regarding documentation - not having a formal lease isn't ideal, but it's not a complete showstopper. You should collect alternative documentation: bank statements showing regular rent payments, receipts from your landlord, written confirmation from roommates, and even photos of your workspace setup. Consistent payment records are key.

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Eli Wang

•8M

That's correct - if you receive a W-2 from your employer, you cannot take a home office deduction, regardless of how much you work from home. This was eliminated for employees with the Tax Cuts and Jobs Act. Some companies offer stipends or reimbursements for home office expenses, so you might want to check with your employer about that option. As for utilities like electricity and internet, those increased costs also aren't deductible for W-2 employees. It does seem unfair to many remote workers, but that's currently how the tax code is structured. Some states may have different rules, but for federal taxes, these expenses aren't deductible for employees.

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Zane Hernandez

•8M

Just wanted to share that I struggled with a similar situation last year - trying to figure out all my deductions as a freelancer working from my apartment. I was getting conflicting advice until I used https://taxr.ai to analyze my specific situation. They clearly explained which portion of my rent was actually deductible (not the whole room in my case since I also slept there) and what documentation I needed to keep. The tool saved me from making a pretty big mistake - I was going to deduct way more than was actually allowed. They also explained the "regular and exclusive use" requirement in plain English and gave me a quick formula to calculate the exact square footage I could legitimately claim.

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Zane Hernandez

•8M

You simply take pictures of your documents and upload them - it can analyze lease agreements, receipts, or whatever documentation you have for your situation. It then walks you through the process step by step. For your living room setup, it would help you calculate exactly what percentage is deductible based on measurements and usage patterns. It does show you exactly which forms you need and where the numbers go. It's much more detailed than the basic questions in standard tax software. It breaks down Form 8829 line by line and explains things like the difference between direct and indirect expenses. It even creates a documentation checklist specific to your situation in case you ever get audited.

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Ethan Scott

•8M

I was really skeptical about trying another tax tool after being burned in the past, but I decided to give taxr.ai a shot after seeing it mentioned here. Gotta say I'm impressed - it walked me through my entire home office situation (I converted my garage) and showed me I was missing several legitimate deductions. The documentation guidance was super helpful since I also don't have a formal lease agreement with my landlord. It showed me exactly what records to keep and how to calculate my space percentage correctly. I ended up with about $1,800 more in deductions than I would have claimed on my own, and I feel confident I could defend everything if questioned. For anyone in a non-traditional rental situation like mine, it's definitely worth checking out.

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Lola Perez

•8M

Hey everyone, after seeing people talk about documentation issues for home office deductions, I wanted to share something that helped me significantly. I was having a nightmare time trying to get proper documentation from my landlord for my audit, and couldn't reach anyone at the IRS for guidance. I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes when I had been trying for weeks on my own. They have this system that holds your place in the IRS phone queue and calls you when an agent is available. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained exactly what alternative documentation would satisfy the requirements for my home office deduction without a formal lease. Saved me so much stress during my audit!

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Lola Perez

•8M

It uses an automated system that continually redials and navigates the IRS phone tree until it gets a spot in the queue. Once it gets through, it calls you and connects you directly to the agent. It's basically doing all the frustrating redial work for you. I was extremely skeptical too. I had spent four separate mornings trying to get through with no luck. The difference is their system can make hundreds of attempts in a short period, which dramatically increases the chances of getting through during those brief windows when lines open up. I spoke with an actual IRS agent who answered my specific questions about home office documentation alternatives.

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Riya Sharma

•8M

I need to eat my words. After my skeptical comment last week, I was desperate enough to try Claimyr because I had a deadline for responding to an audit letter about my home office deduction (similar situation to OP - no formal lease). It actually worked! Got a call back in about 45 minutes and spoke with an IRS agent who was surprisingly helpful. She explained that bank statements showing consistent payments, plus a written statement from my landlord (even just an email or text confirmation) would be sufficient documentation in most cases. For anyone in a rental situation without formal paperwork - get SOMETHING in writing about your arrangement, even if it's just text messages confirming the amount you pay. Saved me from having my deduction denied!

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Santiago Diaz

•8M

One thing nobody's mentioned yet - make sure you're measuring your space correctly! I made the mistake of just eyeballing my office area and saying "yeah that's about 15% of my apartment" which led to problems during an audit. Get a measuring tape and actually measure the square footage of your workspace versus the total living space. And take photos of your dedicated workspace to show it's actually set up as an office. The IRS is pretty strict about the "exclusive use" requirement - if you've got a TV and game console in there too, you might be in trouble.

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Santiago Diaz

•8M

You should include the entire square footage of your apartment when calculating the percentage. This includes closets, bathrooms, hallways - everything. So in your case, you would use the full 800 sq ft as your denominator in the calculation. So if your office is 100 sq ft of an 800 sq ft apartment, your business use percentage would be 12.5% (100 ÷ 800), not the higher percentage you'd get if you excluded some areas. The IRS wants you to use the total square footage of your home, not just the "livable" areas. Make sure you document your measurements carefully!

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KaiEsmeralda

•8M

Just a warning about this deduction - it can potentially trigger an audit flag, especially if you're deducting a large percentage of your rent. When I claimed 30% of my apartment as a home office (legitimately - I run a full-time business from home), I got audited the following year. Make sure your documentation is solid. In my case, I had a floor plan with measurements, photos of my workspace, utility bills showing increased usage during business hours, and a dedicated business phone line. Still got audited, but was able to defend everything successfully.

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