Small business tax help website

Regular and Exclusive Use Test

How much of my home do I have to use as home office?

The home office must be used exclusively for your business and on a regular basis.

You do not have to use the entire room exclusively for your home office. you can use a part of a room as your office is it is used exclusively for your business.

Exception to the Exclusive Use Test

There is an exception to the exclusive use test. Qualifying day care providers are exempt from meeting the exclusive use test. A qualifying day care provider is a person who has stat approval to operate a day care center or family or group day care home.

It is not practical to expect a day care provider to confine children to a specific room in the house. Therefore, day care providers are permitted to allow the children to have the run of the house. If you use space in your home on a regular basis for your day care business, you may be able to deduct the business expenses even though you use the same space for nonbusiness purposes.

Regular and Exclusive Use Test

If you have more than one sideline business operating in your home, each business (separate from any other) must meet the exclusive use test.