A. The Home Office Deduction. Consultants that maintain an office in their home may deduct a portion of their carrying costs in relation to the size of the space that is used exclusively and regularly as the primary location where business is conducted. This deduction works nicely for many start-ups that work primarily from home and maintain a virtual office.
Tax Tip: Even if you maintain a permanent office, you can still utilize the home office deduction, if you regularly meet clients at home.