When it comes to home business taxes, it is possible to deduct the space used for your home office. This can be a big help, since in some cases it can amount to quite a bit.

You figure your home office deduction by calculating how much space your home office takes up. This can be an entire room, or even a portion of a room. Then you figure out the percentage of the total square footage of your home that the office takes up. You deduct the percentage of your mortgage payment that goes toward your home office.

This even works for renting. You can deduct a portion of your rent check. And the proportional deduction also applies to utilities, since your home office uses power and heat. For more details, visit the IRS Web site or talk to a tax attorney or accountant.