A taxpayer can deduct rent as an expense only if the rent is for property used in trade or business. Rent for the personal use of a home is not deductible, according to Internal Revenue Service Publication 535.
If the taxpayer operates a trade or business from her home and uses a portion of the home regularly and solely for that business, she can deduct a portion of the rent from the business income, according to IRS Publication 587. The deduction is based on the percentage of the home used by the business. Once the taxpayer qualifies the home office deduction, a percentage of the utilities and upkeep of the home are also deductible.