The Home Office Deduction: A Relief Vet's Secret Weapon

For most relief vets, the answer is clear: you schedule shifts, send invoices, track expenses, and manage your business from home. That makes your home office your principal place of business for administrative purposes — even though the clinical work happens at clinics.

Two Calculation Methods

Simplified Method

The easier option:

• $5 per square foot of your dedicated office space
• Maximum of 300 square feet
• Maximum deduction: $1,500 per year
• No Form 8829 required — just enter the amount on Schedule C
• No depreciation recapture when you sell your home
• You can switch between methods year to year

Regular Method (Form 8829)

The more work, but potentially larger deduction:

• Calculate the percentage of your home used for business (office square footage ÷ total home square footage)
• Apply that percentage to your actual home expenses:
  • Mortgage interest or rent
  • Property taxes
  • Utilities (electric, gas, water, internet)
  • Homeowner's insurance
  • Repairs and maintenance
  • Depreciation of the home
• The deduction can be significantly larger than $1,500, especially if you have a larger dedicated space
• Requires detailed record-keeping
• Depreciation must be recaptured when you sell your home (this is the main downside)

Which Should You Choose?

For most relief vets, the simplified method is the right call:

• The deduction amount ($750-$1,500) is modest but guaranteed
• No depreciation recapture headaches
• The real value is establishing the home office for the mileage benefit
• Minimal paperwork

If your dedicated office is large (200+ square feet) and your housing costs are high, run the numbers both ways or ask your CPA to compare.

Common Mistakes to Avoid

"I use the kitchen table" — probably doesn't qualify. If anyone in your household also uses that space for non-business purposes (meals, homework, etc.), it fails the exclusive-use test.

"My office is also the guest room" — doesn't qualify. A space that doubles as a guest room, even occasionally, fails the exclusive-use test.

"I don't have a separate room" — that's okay. A desk, bookshelf, and filing cabinet in a corner of a room can qualify, as long as that specific area is used exclusively for business. Measure the square footage of just that area.

"It seems too small to bother with" — think about the mileage. Even a 50-square-foot office space ($250 simplified deduction) is worth claiming because it unlocks the mileage conversion. The deduction itself is the side benefit.

How to Set Up Your Home Office

1. Choose your space. Pick a dedicated area used only for your relief vet business.
2. Measure it. Document the square footage of your office and your total home.
3. Take a photo. Photograph your office setup for your records. Date it.
4. Document your business use. Keep a brief log of the administrative tasks you perform there (scheduling, invoicing, CE, etc.).
5. Claim the deduction. Use the simplified method on Schedule C or file Form 8829 for the regular method.
6. Deduct all your mileage. With a qualifying home office, every trip to a clinic is now a deductible business trip.

The Bottom Line

The home office deduction is a two-for-one deal for relief vets. You get the direct deduction ($750-$1,500 with the simplified method), plus you unlock the ability to deduct every single mile you drive to and from clinics.

For a typical relief vet, that's a combined tax savings of $1,500-$2,500 per year — from a 50-square-foot desk in the corner of your spare room.

Set it up. Document it. Claim it.