Running a small office or home office (SOHO) comes with plenty of challenges, but taxes don’t have to be one of them. As 2025 unfolds, there are key trends and strategies that can help you maximize your tax deductions and keep more money in your pocket. Let’s dive into some of the most valuable deductions and tips tailored for businesses with fewer than 10 employees, home-based workers, and those using coworking spaces.
Home Office Deduction
The home office deduction is a must-know for anyone working from home. For 2025, the IRS allows $5 per square foot of your home office space, up to 300 square feet. That’s a potential $1,500 deduction! Remember, the space must be used exclusively and regularly for business purposes. This deduction can cover:
- A portion of your mortgage interest
- Property taxes
- Utilities
- Home insurance
