TC business taxes · home officeHome office deduction for transaction coordinators: the simplified option
Most transaction coordinators work from home, and part of a home used for the business can be deductible – but only a part used exclusively and on a regular basis for business, under both IRS methods. The simplified option is a standard $5 per square foot of the space used for business, up to 300 square feet, so at most $1,500 a year; mortgage interest and real estate taxes stay fully on Schedule A if you itemize, and there is no depreciation – so no depreciation recapture when the home is sold. The regular method uses actual expenses for the business share of the home, includes depreciation (recaptured on a later sale) and needs records. Under either method the deduction cannot be more than the gross income from the business use of the home minus other business expenses; only the regular method lets the excess carry over.
Simplified option vs regular method (irs.gov)
Space
Simplified: square feet used for business, up to 300. Regular: the percentage of the home used for business.
Amount
Simplified: $5 per square foot. Regular: actual expenses, with records kept.
Mortgage interest and taxes
Simplified: all on Schedule A. Regular: split between Schedule A and Schedule C.
Depreciation
Simplified: none, and no recapture when the home is sold. Regular: deducted, and recaptured on the gain at sale.
Income limit
Both: not more than the gross income from business use of the home less business expenses. Only the regular method carries the excess over.
Example: a 150-square-foot office
Simplified
150 × $5
$750 for the year.
Bigger room
400 sq ft
Capped at 300 sq ft: $1,500.
Before you claim it
- Regular and exclusive use: a desk in the family room used for homework too does not qualify.
- Measure the space and keep a photo and a simple floor sketch.
- Pick a method each year; ask a tax professional if you plan to sell the home soon (depreciation recapture).
Questions TCs ask
Can a transaction coordinator deduct a home office?
Yes, if part of the home is used regularly and exclusively for the TC business. The IRS simplified option allows $5 per square foot, up to 300 square feet.
What is the maximum simplified home office deduction?
$1,500 a year: $5 × 300 square feet, and not more than the gross income from the business use of the home less business expenses.
Does the simplified option cause depreciation recapture when I sell?
No. There is no depreciation deduction for the years you use the simplified option, so no recapture for those years (irs.gov).
Related guides
ClosingCode's Money tab sorts TC expenses into Schedule C lines with receipts attached, so the numbers your tax preparer needs are ready in one package.
Start free trialSource: irs.gov "Simplified option for home office deduction" (read October 25, 2026).
General information, not tax or legal advice. ClosingCode is software; it is not a tax preparer, CPA or law firm. State rules on taxes and worker classification can differ. This guide is not a substitute for the advice or services of an attorney.