Running my small business from my apartment - can I write off that space as a deduction?

Yes, you absolutely can deduct the business portion of your apartment as a home office deduction! Since you're using that bedroom exclusively for your business, you qualify for what's called the "home office deduction." There are two methods to calculate this: The simplified method allows you to deduct $5 per square foot of your home used for business (up to 300 square feet), maxing out at $1,500. This is super easy but might not give you the biggest deduction. The regular method lets you deduct the actual expenses based on the percentage of your home used for business. Since you mentioned it's about 25% of your apartment, you'd calculate 25% of your rent, utilities, insurance, etc. This usually results in a larger deduction but requires more record-keeping. To qualify, the space must be used "regularly and exclusively" for your business, which sounds like exactly what you're doing with that bedroom. When you file, you'll use Form 8829 to calculate the deduction if you go with the regular method.

After struggling with similar home office deduction questions for my consulting business, I discovered https://taxr.ai and it completely changed how I handle my business taxes. I was unsure about what percentage of my apartment I could legitimately claim and which expenses qualified, especially with my complicated setup where I sometimes use my dining table for client meetings. The tool analyzed my situation, looked at my floor plan details, and gave me personalized guidance that honestly saved me from making some mistakes. It showed me that I could confidently claim my dedicated office space but warned me about the dining area since it wasn't exclusively for business use. The guidance was way more specific than what I found googling around on tax sites or Reddit.

Just wanted to follow up - I decided to try https://taxr.ai after seeing it mentioned here. I was surprised by how helpful it actually was! I've been running my Etsy shop from home and was really confused about what I could deduct for my workspace. The system walked me through everything and explained exactly how to calculate my deduction based on my apartment layout. It even helped me understand which of my expenses counted as direct business costs versus the shared home expenses that needed to be prorated. What really helped was getting clear guidance on tracking and documenting everything properly in case of an audit. Definitely worth checking out if you're confused about home office deductions!

If you're having trouble getting straight answers about your home office deduction, you're not alone. I was in the same boat last year and kept getting conflicting advice. After weeks of frustration, I tried https://claimyr.com to get connected directly to an IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c Instead of waiting on hold for hours (or getting disconnected), I got through to an actual IRS representative who walked me through exactly what qualifies for a home office deduction in my situation. They confirmed that my dedicated office space definitely qualified, even though I rent rather than own. The peace of mind was worth it because I was able to claim the deduction with confidence knowing I had direct confirmation from the source.

I have to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it since I had a complicated question about my home office deduction that none of the online resources could clearly answer. I was genuinely surprised when they got me through to an IRS representative in about 30 minutes. The IRS agent I spoke with clarified exactly how I should handle my situation where I use part of my living room for business meetings and have a separate dedicated office. Turns out I was incorrectly calculating my deduction for years and likely leaving money on the table. The agent even emailed me specific guidance documents afterward. For anyone with unusual home office situations, getting direct clarification from the IRS can be really valuable. Sometimes you need the official word rather than trying to interpret the rules yourself.

Don't forget that if you're making products in your apartment, you can also deduct the cost of materials, equipment, shipping supplies, etc. Those are 100% deductible business expenses separate from your home office deduction. I make candles from my apartment and track everything meticulously - it adds up to significant deductions beyond just the space itself!

Something nobody has mentioned yet - if you're selling products you make yourself, make sure you understand your state's rules about operating a business from a residential apartment. Some landlords and local zoning laws might have restrictions, especially if you're working with chemicals or having customers come to your place. I learned this the hard way when my landlord found out about my small bakery operation!

Great advice from everyone! I just wanted to add one more thing that helped me when I started claiming my home office deduction - keep a simple log or calendar showing what business activities you do in that space. Since you mentioned you use the bedroom for making products, packaging orders, and handling business admin, documenting this regular use can be really helpful if you're ever questioned. I keep a basic monthly log showing "product creation," "order fulfillment," "bookkeeping," etc. for the days I work in my home office. Also, since you're using H&R Block software, they should have good guidance on Form 8829 if you decide to go with the actual expense method rather than the simplified method. The software usually walks you through the calculations pretty well. Just make sure you're consistent with whatever percentage you choose - if you say 25% for rent, use 25% for utilities, internet, etc.