An often-overlooked deduction for self-employed individuals is the home office deduction. This allows you to write off a portion of your home expenses as business expenses. To qualify, you must use a specific area of your home exclusively for business purposes. There are two methods to calculate the home office deduction: the actual expense method and the safe harbor method. The safe harbor method lets you deduct a flat $5 per square foot of your home office, up to 300 square feet or $1,500. You can choose the method that provides the greatest deduction. The actual expense method involves using a percentage of your total home expenses. This percentage is determined by dividing the square footage of your home office by the total square footage of your home. You can then deduct this percentage of all your home expenses, including mortgage interest, rent, insurance, utilities, and repairs and maintenance. Note that expenses specific to areas outside the home office, like lawn maintenance, do not qualify. Consult your CPA to determine if you qualify for the home office deduction and which method is best for you.