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Answer Posted / sweety jain
Direct expenses are those that benefit only the part of
your home that is used for your trade or business. Direct
expenses are 100% deductible. For example, if you have
expenses for repairing or painting the specific area or
rooms you use for business, these would be direct expenses.
Indirect expenses are for keeping up and running your
entire home, including both the business and personal
portions. On the tax form, you report 100% of these
expenses and then apply the percentage you calculated for
business use of your home to determine the portion of these
overall expenses that apply to your business.
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