If you operate a business from your home, you must use the space exclusively for business and on a regular basis.  The space must be your principal place of business where you meet with clients or customers or the only location in which you have to conduct substantial administration or management duties.   If you are an employee your home office must also be for the convenience of your employer in order to qualify for deduction.  In both instances, your home office deduction is limited to the gross income attributable to the trade or business for which the home office is used. Any unused deduction is carried over to the next year.