Business Tool · Taxes
The home office deduction for a cottage food kitchen, simplified
Measure the space you use only for the business, enter it once, and Line 30 shows up in every tax year. Part of Artisan Pro.
The problem
Most home bakers never claim the space they bake in
The home kitchen deduction for a home bakery or jam business is one of the simplest lines on Schedule C, and one of the least claimed. Sellers skip it because they aren't sure they qualify, or forgot it by January.
The exclusive-use question
The space has to be used only for the business. Your family kitchen probably isn't. A prep counter, a pantry, or a spare room lined with mason jars might be. Most sellers never ask.
A number nobody wrote down
Your preparer asks how many square feet. You guess. Next year you guess differently. One measurement, stored with your settings, ends that.
Forgotten by year two
This isn't a receipt you log in April. It's a standing fact about your business. If it isn't carried forward, it quietly falls off the return in year two.
Try it now
Simplified method calculator
Drag the slider to the square feet you use only for the business, then tick the three checks.
Your space
Exclusive-use area only. A 6 ft × 10 ft pantry is 60 sq ft. capped at 300
Does the space pass these checks?
What lands on Schedule C
- ✓Exclusive use
- ✓Regular use
- ✓Principal place of business
Line mapping is a bookkeeping convenience, not tax advice — confirm with your preparer. This shows deductions, not tax owed; SellFood does not calculate tax. In a real tax year, Line 30 is also limited to that year's profit.
In the real tool, you enter the square feet once. It sits in your settings, shows as Line 30 in every tax year, and is capped by that year's profit automatically.
Start tracking →Included with Artisan Pro
How the home kitchen deduction works in SellFood
Live today for Artisan Pro and Founding members. Small on purpose: one number, one line, every year.
One number, entered once
Save the square feet used exclusively for the business in your settings. That's the setup. Change it if your sourdough operation moves to a bigger room.
Line 30 in every tax year
Pick any year on the Taxes page and the home kitchen line is already there. Nothing to re-enter in January.
Capped by profit
The simplified method can't create a loss. If a slow year's profit is smaller than $5 × your square feet, SellFood shows the smaller number and says why.
On the PDF and the Schedule C view
Line 30 appears in the Schedule C view, on the branded tax-year PDF, and in the preparer package, next to your mileage and receipts.
Regular method not supported
SellFood does the simplified method only. Deducting a share of actual rent, utilities, and insurance is the regular method, and it belongs with your preparer. We'd rather say so than half-build it.
Questions sellers ask
Plain answers, not tax advice. Your preparer has the final word.
Does a shared family kitchen qualify for the home kitchen deduction?
Often not. The deduction requires exclusive and regular use: the space is used only for the business, not for family dinners too. A kitchen that does both jobs usually fails that test. A separate prep counter, pantry, or storage room used only for the business may qualify. Exclusive use has a legal meaning, so ask your preparer.
What's the maximum home kitchen deduction under the simplified method?
The simplified method allows $5 per square foot, up to 300 square feet, so the ceiling is $1,500 for the year. If your exclusive-use space is larger, SellFood counts 300 and tells you it was capped. A larger space might do better under the regular method, which SellFood doesn't support; ask your preparer.
What if I have a separate pantry or storage room for the business?
If a room or clearly marked area is used only for the business, regularly, it can count toward your square feet even when your main kitchen doesn't qualify. Think of a closet holding mason jars and labels, or a spare room where you package granola. Measure it, enter it once, and confirm with your preparer.
What's the difference between the simplified method and the regular method?
The simplified method is a flat $5 per square foot of exclusive-use space, capped at 300 square feet, with no rent or utility receipts required. The regular method deducts a share of actual home expenses and involves more records and depreciation. SellFood supports the simplified method only. If the regular method fits you better, bring it to your preparer.
Can the home kitchen deduction turn my profit into a loss?
No. Under the simplified method, the deduction can't exceed the business's tentative profit for the year, so it can reduce net profit to zero but can't create or increase a loss. SellFood applies that limit in each tax year. In a slow year you'll see a smaller Line 30 than $5 times your square feet, with a note explaining why.
One number, every year
Measure it once. Let SellFood carry it.
Included with Artisan Pro alongside the full Taxes and Accounting pages. Start free, upgrade when you're selling. New to selling from home? Start with the state cottage food guides.