Question

Which of the following taxpayers may qualify to deduct home office expenses?
Bianca, a self-employed architect, uses a portion of her home exclusively and regularly to meet with clients.
Leo, an employee at XYZ Corp., works from home several days a week but is reimbursed for all work-related expenses.
Martin, a self-employed insurance agent, occasionally uses his home for work, but his main office is elsewhere.
Nadia, a self-employed real estate agent, uses a spare room for her business but also allows her children to do homework and play games there.

Answer 1

Only Bianca.

- Bianca (self‑employed): Qualifies. She uses part of her home exclusively and regularly to meet with clients — that meets the “exclusive and regular” use test and is an allowable business use (meeting clients), so she can claim a home‑office deduction.
- Leo (employee): Does not qualify. Employees generally may not deduct unreimbursed home‑office expenses under current law (and he is reimbursed anyway), so no deduction.
- Martin (self‑employed, occasional use): Does not qualify. Occasional use does not meet the “regular” usage requirement.
- Nadia (self‑employed, shared room): Does not qualify. Allowing children to use the room means the space is not used exclusively for business, so it fails the exclusivity test.

(If Nadia or Martin changed their facts — e.g., created a clearly separate area used only for business on a regular basis — they could become eligible.)