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How to Complete the Home Office Expense Prep Form

Learn how to accurately complete the Home Office Expense Prep Form for clients claiming work-from-home or business-use-of-home expenses.

The Home Office Expense Prep Form is used to capture details about the client’s home office setup and related expenses. The information collected helps to calculate eligible home office deductions, which will reduce the client’s taxable income.

Home Office Size Information

Start by inputting the home office size:

  • Square Footage of Home Office: Enter the total square footage of the specific area used exclusively for work.

  • Square Footage of Entire Home: Enter the total square footage of the entire home.

The tax team will use these figures to determine the percentage of home expenses that can be allocated to the home office claim.

Please Note: Most expenses will be prorated based on the square footage ratio between the home office and the entire home.

Reporting Home Office Expenses

Input the total annual expenses incurred for the home that relate to the home office. These will be prorated based on the home office’s square footage relative to the entire home. List amounts for the following:

  • Heat (Salaried and Commissioned Employees): Include heating costs for the entire home.

  • Electricity (Salaried and Commissioned Employees): Include total electricity costs for the entire home.

  • Rent (Salaried and Commissioned Employees): Enter total rent paid for the home.

  • Maintenance (Salaried and Commissioned Employees): Repairs and maintenance costs related to the home (e.g., general upkeep, minor repairs).

  • Property Taxes (Commissioned Employees Only): Only applicable if the client is a commissioned employee and owns their home.

  • Home Insurance (Commissioned Employees Only): Homeowner’s insurance costs for commissioned employees.

Adding Other Expenses

If there are additional expenses specific to the home office, input them under "Other" and specify:

  • Example: Office Supplies (100%) – If the expense relates solely to business use and should not be prorated, specify "100%" next to the item.

  • Other examples may include: specialized cleaning services for the office, office furniture, or exclusive office utilities.

Please Note: Some business-specific items (e.g., printer ink, filing cabinets) may qualify for a full 100% deduction if used solely for work.