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Guide · Schedule C
Home office deduction: spreadsheet vs apps
A dedicated workspace used regularly and exclusively for business can unlock a home office write-off — if you qualify. Here is how freelancers usually choose between the simplified square-footage method and a regular expense allocation, and when a plain spreadsheet is enough. Not tax advice.
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Two common paths
| Method | What you track | Best when |
|---|---|---|
| Simplified | Qualified square footage × IRS rate (subject to caps) | You want less paperwork and a smaller space |
| Regular | % of rent/mortgage interest, utilities, insurance, repairs allocable to the office | Your space is larger or actual costs clearly beat simplified |
Exclusive-use and principal-place-of-business tests still matter. Kitchen tables that double as dinner usually fail exclusive use — confirm with Pub 587 or a preparer.
What to log either way
- Floor plan notes: office sq ft vs home sq ft (photo or sketch helps)
- Monthly rent or mortgage interest statements
- Utility and internet bills if you allocate under the regular method
- Date the space became (or stopped being) exclusive business use
Apps vs spreadsheet
Tax software (TurboTax / H&R Block / TaxAct placeholders) walks you through Form 8829 at filing time. Year-round expense apps (QuickBooks Self-Employed placeholder, Everlance placeholder) categorize bills as they hit the bank. A spreadsheet wins when you already save PDFs and only need a clean allocation table plus invoice totals for Schedule C — see also our Schedule C checklist.
Expense columns without another subscription (Yellowcell)
Yellowcell’s invoice + expense kit gives freelancers a one-time Excel place for billed work and categorized write-offs — handy when you allocate home costs once a quarter and reconcile against invoices. Pair with the free 2026 mileage log if you also drive for clients.