A home office will qualify as the principal place of business if it is used exclusively and regularly to conduct administrative or management activities of a trade or business and/or store inventory. There must be no other fixed location of the business where the taxpayer can conduct these activities. The area claimed can only be used for your business, and not at all for personal use. You may or may not be able to claim the entire amount. You can if your gross income from the business is equal or greater than your total business expenses.