Deduction Limit

Deduction Limit
If gross income from the business use of your home equals or exceeds your total business
expenses (including depreciation), you can deduct all of your business expenses related to the use
of your home. If gross income from the business use of your home is less than your total business
expenses, your deduction of otherwise nondeductible expenses, such as insurance, utilities, and
depreciation, allocable to the business is limited. (See IRS Pub. 587 for thorough explanation)