How much of my rent and utilities can I write off?

Q: If I did some freelance work from my home (illustration work), and I am a renter of a 3-room apartment, how much of my rent and utilities can I write off? - Thanks —James, Mansfield

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: You are asking about an "office in the home". In order to qualify for a deduction, the space must be used both regularly and exclusively for business. As it sounds like a "one shot" deal, there would be a problem with proving that your business is conducted on a sufficiently regular basis to qualify for a deduction. If, however, you get over that hurdle, is the space you used segregated in some fashion and used exclusively for your business. In a three room apartment, a relatively small section might qualify, but if it does, on both counts, you would take the portion of the rent, usually based on the number of square feet used for the business divided by the total square feet in the apartment space, multiplied by the rent paid. Remember to reduce that rent for computation of the MA renter's deduction for the portion deducted as a business expense.