A bonus of working from your San Antonio rental property are obvious: You can write emails in your pajamas with loud music playing in the background, set your HVAC to whatever temperature that makes you comfortable, and avoid rush-hour traffic on Interstate 410, FM 1604, I-10 and Hwy 281. But one thing that work-from-home tenants can miss out on (besides the in office gossip) is deducting their home-office space come tax time.

But the knowledgeable tenant knows this perk is not just for landlords. Like landlords who can qualify for tax breaks on home offices, tenants may be able to claim the home-office deduction on their federal income taxes. Of course, when it comes to taxes, nothing is simple. Rules and exceptions still apply, so I’ve answered a few of the most common questions for tenants who work from home, at least part of the time.

I work out of my rental home. Does that count?

To qualify for the deduction, you must use your home — no matter how it’s defined — as your principal place of business. That doesn’t mean you can’t have more than one place of business; it simply means that you must use your home “substantially and regularly” (that’s the IRS criterion) for business. Generally, if you meet clients at your home office as part of your normal course of business, you satisfy the rule. That’s true even if you also carry on business at another location, like an insurance office.

Another Stumbling Block?

Well, there’s another obstacle. The space you claim must be used exclusively for conducting business. That means you can’t use it for any other purpose. Placing your computer on the dining room table doesn’t equate to your office. The same holds true if you meet clients in your living room. The room must be clearly exclusive, but it doesn’t have to be completely separate from your other living space. You don’t, for example, have to claim an entire room as your home office, a desk in a sectioned-off part of a room may be sufficient.

Self-employed or not?

Most people assume that you have to be self-employed to take a home-office deduction, but that’s not true: The deduction is also available to employees who work from home. However, in addition to the exclusivity requirement, your workspace must be for the convenience of your employer and not because it’s simply easy for you. You have to pay all of your own expenses as well: To claim the deduction, you cannot perform services in a space for which your employer pays the rent.

Calculating the percentage of my home used for business

First, determine the square footage of your entire home. Next, measure the room or part of a room that qualifies as your business space. Divide the space used for business by the total square footage of your home. The resulting percentage is what you’ll use to prorate your expenses. Here’s a quick example: Suppose your home is 2,000 square feet and the space you use for business is 250 square feet. You’ll figure your deductions by prorating expenses by 12.5%, or 250 square feet divided by 2,000 square feet.

What expenses qualify?

To figure the home-office deduction, qualifying expenses for landlords may include mortgage interest, professional property management, and real estate taxes. But that doesn’t mean that tenants are stuck: Payments to your landlord count. Qualifying expenses for landlords and tenants also include items like home maintenance, including tenants’ insurance, electricity, security systems, and a secondary phone. It may also include a portion of your Internet fees. It’s important to note that the IRS does not allow a deduction for a primary phone in your home even if you use it only for business, the IRS considers it a personal expense.

Calculating total home-office deduction

Multiply the percentage of your home used for business by your total expenses. The resulting figure is your deduction. Using our earlier example, let’s assume your total expenses are $15,000. Your deduction, reportable on Form 8829, is $1,875 or the 12.5% times $15,000.

Remember

The IRS requires and expects you to keep excellent records to substantiate your expenses.