The Business Use of Home form can be used with your Schedule C business. However, it can no longer be claimed as an itemized deduction on your Schedule A for W-2 employees (initially due to Tax Cuts and Jobs Act and will now be made permanent by the OBBBA).
According to the IRS. you can claim expenses related to the Business Use of Home on your Schedule C if you use part of your home as:
- 'Exclusively and regularly as your principal place of business for your trade or business;
- Exclusively and regularly as a place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business;
- A separate structure that's not attached to your home used exclusively and regularly in connection with your trade or business;
- On a regular basis for storage of inventory or product samples used in your trade or business of selling products at retail or wholesale;
- For rental use; or
- As a daycare facility"
The portion being claimed must be used:
- On a regular basis (you cannot store inventory one time and claim expenses)
- Exclusively for business and cannot be used for personal use