If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, security system and depreciation. To qualify, you must meet the following tests.
The business part of your home must be used exclusively and regularly for your trade or business. However, there are exceptions for daycare facilities or storage of inventory/product samples.
The business part of your home must be:
Your principal place of business, or
A place where you meet or deal with patients, clients or customers in the normal course of your trade or business, or
A seperate structure (not attached to your home) used in connection with your trade business.