Updated November 7, 2026. Quick answer: Publication 587 says you may use any recordkeeping method but your records must show the part of your home used for business, that it is used exclusively and regularly as your principal place of business or to meet clients, and the depreciation and expenses for the business part. Keep the room measurements, the bills and receipts, and for an owned home the records of what you paid and when.
On deductions by profession: tax deductions for private tutors, tax deductions for virtual assistants and tax deductions for interior designers.
What the IRS says your records must show
This page reads the primary sources linked under Sources, as retrieved on November 6 and 7, 2026. Publication 587 is the 2025 edition.
Publication 587 states the rule: “You do not have to use a particular method of recordkeeping, but you must keep records that provide the information needed to figure your deductions for the business use of your home.” “You should keep canceled checks, receipts, and other evidence of expenses you paid.” The records “must show the following information.” The part of your home you use for business, that you use part of it exclusively and regularly for business, and the depreciation and expenses for the business part.
| Record | What to keep | Why |
|---|---|---|
| Part used for business | A floor plan or sketch with the room’s measurements and the home’s total | Form 8829 lines 1 and 2 allow square feet or any other reasonable method |
| Exclusive and regular use | A dated description of what the space is used for, and a photo of the room | The qualifying tests are on the home office deduction page |
| Operating expenses | Rent, mortgage interest, taxes, insurance, utilities, repairs: bills or statements for the year | Form 8829 Part II |
| Depreciation basis (owned home) | Closing papers, the purchase price, improvements, and any depreciation already taken | Form 8829 Part III |
Measuring the space
The Form 8829 instructions say how loosely the area may be measured: “you can use square feet or any other reasonable method if it accurately figures your business percentage on line 7.” Measure once, write the numbers on a sheet with the date, and keep it with that year’s records. The IRS suggests how to file them: “For instance, organize them by year and type of income or expense.” Publication 587 states the link to utilities: “Generally, the business percentage for utilities is the same as the percentage of your home used for business.” See Form 8829 lines 1 to 7 for the percentage itself.
The basis records for an owned home
Publication 587 says: “Keep records to prove your home’s depreciable basis. This includes records of when and how you acquired your home, your original purchase price, any improvements to your home, and any depreciation you are allowed because you maintained an office in your home.” Those documents outlast the year. The same publication tells you how long: “You must keep your records for as long as they are important for any tax law.” The publication gives the usual period as the later of 3 years from the return due date or the date filed, or 2 years after the tax was paid. See the home office deduction and Form 8829.
Things that are personal, not office
Publication 587 treats ordinary household costs as personal unless they cover the business part: “are primarily personal expenses. However, if you use part of your home for business, you can deduct the business part of these expenses.” Keep the whole bill, then apply the percentage; do not hand your preparer only the business part. The first landline is separate: see phone and internet records.
Software is optional
A shared folder named by year and expense type holds these documents. Dext’s US home page says you can send receipts, invoices and statements by mobile, email, WhatsApp or desktop, and SparkReceipt’s pricing page lists AI scanning and categorization of receipts and invoices; both are the vendors’ statements and this page has not used either product. Neither measures your room or decides whether the space qualifies.
Common mistakes
- Not measuring until the notice arrives. A sketch made at filing time is still better than none, but a dated one is stronger.
- Keeping only the business share of a bill. The record is the whole bill and the percentage.
- Losing the purchase papers. Basis records are needed at sale, years after the deduction.
- Using the space for both work and a guest bed. The exclusive-use test is the one the other records are meant to prove.
Related: the home office deduction, Form 8829, and Receipts and Expense Records for a One-Person Business.
Sources
- IRS Publication 587 (2025), Business Use of Your Home
- Instructions for Form 8829 (2025)
- IRS, What kind of records should I keep
Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.