What Does Home Office Mean?
Home office refers to a portion of a residential house which is used to conduct business. Proving this by documentation allows the taxpayer in the US to have deductibles.
Home office can also refer to where the headquarters of a company is located.
Insuranceopedia Explains Home Office
When a person turns a room or a part of their residence into a place for business, that room or part of the house becomes a home office. For that person to enjoy tax deductibles, they must always conduct their business activities (like meeting clients) there. They must also determine the measurements of the space used as an office. Tax deductibles apply to both homeowner or renter.
In terms of insurance, a typical homeowner’s policy has a limit to covering items that are meant for business that are kept at home. It is advised that a person who also works at home buys a policy to cover the things he or she uses for business, such as computer, printer, and cabinets.
Home office can also refer to the location of the headquarters of a company. For example, Apple Inc.’s home office is in Cupertino, California.