Home Office
What Does Home Office Mean?
A home office refers to a portion of a residential property used for conducting business. In the United States, providing documentation of this space allows the taxpayer to claim deductions related to its use for business purposes.
Additionally, the term “home office” can also refer to the headquarters or main location of a company’s operations.
Insuranceopedia Explains Home Office
When a person designates a room or part of their residence as a place for business, that space becomes a home office. To qualify for tax deductions, the individual must regularly conduct business activities (such as meeting clients) in that space. Additionally, they must measure the area used for business purposes. Tax deductions apply to both homeowners and renters.
Regarding insurance, a typical homeowner’s policy may have limits on coverage for business-related items kept at home. It is recommended that individuals who work from home purchase a separate policy to cover business assets, such as computers, printers, and office furniture.
The term “home office” can also refer to the headquarters or main location of a company. For example, Apple Inc.’s home office is located in Cupertino, California.
