Home Office & Vehicle Deduction Calculator | SmallBiz CFO
CFO
Home Office & Vehicle Deduction Calculator
SmallBiz CFO | Powered by Global Accounting LLC
Your tax profile
Tax year
Gross business income
$
Marginal tax rate
Home Office Deduction
Choose your calculation method
Simplified Method: IRS allows $5 per sq ft of dedicated office space, up to 300 sq ft max ($1,500 maximum deduction). No depreciation recapture when you sell your home. Best for smaller offices or renters.
Office square footage
sq ft
Home square footage
sq ft
Actual Expense Method: Deduct the business-use percentage of all home expenses. Generally produces a larger deduction than simplified. Requires records. Home depreciation included but triggers recapture on sale.
Office square footage
sq ft
Total home square footage
sq ft
Annual home expenses
Rent or mortgage interest
$
Utilities
$
Home insurance
$
Repairs & maintenance
$
Property tax
$
Home value (owned only)
$
Office sq ft
0
÷
Home sq ft
0
=
Business %
0%
×
Total expenses
$0
=
Home office ded.
$0
Home office deduction
—
—
Business use %
—
—
Tax savings (home office)
—
—
Simplified vs Actual — which is better for you?
Vehicle Deduction
Choose your vehicle deduction method
Standard Mileage Rate: Multiply business miles by the IRS rate. Simple, no receipts for individual expenses needed. 2026: 70¢/mile · 2025: 70¢/mile · 2024: 67¢/mile · 2023: 65.5¢/mile. Must choose this method in the vehicle's first year of business use.
Business miles driven
mi
Total miles driven
mi
Parking & tolls
$
Actual Vehicle Expenses: Deduct the business-use % of all vehicle expenses including depreciation. Can produce a larger deduction for expensive vehicles. Requires detailed records of all expenses.
Business miles
mi
Total miles
mi
Annual vehicle expenses
Gas & fuel
$
Repairs & maintenance
$
Insurance
$
Registration & fees
$
Lease payments
$
Depreciation
$
Business miles
0
×
IRS rate
$0.70
=
Mileage ded.
$0
|
Business %
0%
×
Total expenses
$0
=
Actual ded.
$0
Vehicle deduction
—
—
Business use %
—
—
Tax savings (vehicle)
—
—
Standard mileage vs actual expenses — which is better?
Combined Deduction Summary
Home office ded.
$0
+
Vehicle ded.
$0
=
Total deductions
$0
×
Tax rate
24%
=
Total tax saved
$0
Home office deduction
—
Annual deduction
Vehicle deduction
—
Annual deduction
Total deductions
—
Combined annual
Total tax savings
—
At your marginal rate
Fill in your details above
Enter your home office and vehicle information to calculate your maximum allowable deductions and estimated tax savings.
IRS rules & documentation requirements
Home Office Rules
✓ Must be used regularly and exclusively for business
✓ Must be your principal place of business
✓ Deduction cannot exceed gross income from business
✓ Separate structure counts even if not your main office
✗ Guest room / dual-use spaces do NOT qualify
✗ Employees (W-2) cannot claim home office on Schedule A post-2017
Vehicle Rules
✓ Must keep a mileage log — date, destination, business purpose
✓ Standard mileage: must elect in first year of business use
✓ Commuting (home to regular office) is NOT deductible
✓ Business errands, client visits, supply runs count
✗ Personal trips mixed in are not deductible
✗ Cannot use standard mileage for vehicles used for hire (Uber, etc.)
Estimate only. Home office deduction cannot exceed net business income (gross income limitation). Vehicle depreciation is estimated and may differ from IRS tables (MACRS). Actual expense method results depend on your specific situation. Always consult a licensed CPA before claiming these deductions. Mileage rates: 2026 & 2025 = 70¢/mi; 2024 = 67¢/mi; 2023 = 65.5¢/mi.