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Home Office Exception

Quick definition

If you have a qualifying home office, drives from home are business miles, not commuting.

The home office exception treats a qualifying home office as your principal place of business. That changes the entire mileage equation: drives from home to client sites become business miles instead of commuting.

What qualifies as a home office

A space used regularly AND exclusively for business. A spare bedroom that doubles as a guest room does not qualify. A converted attic or basement office that is only used for business does. The space does not have to be large.

What the exception unlocks

Without a home office, your first drive to a regular workplace is commuting. With a qualifying home office, that same drive becomes a deductible business mile. See the full breakdown.

Why it matters for self-employed drivers

Real estate agents, in-home health professionals, freelance trades, and other workers who base out of their homes can deduct miles that W-2 employees doing the same job cannot. This is often a difference of thousands of dollars per year.

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