Final answer:
The fully deductible expenses for business use of a home, subject to income limitations, commonly include the business portion of real estate taxes, mortgage interest, rent, and certain other costs directly related to the business area of the house.
Step-by-step explanation:
Expenses incurred for the business use of a home can often provide tax deductions. Deductions are generally limited to the income generated by the home business, after other business expenses have been taken into account. Some expenses that may be fully deductible include the business portion of real estate taxes, mortgage interest, rent, casualty losses, maintenance, utilities, insurance, depreciation, and repairs. In some cases, these expenses can be deducted in full, up to the gross income limitation from that business. The home office must be used regularly and exclusively for business to qualify for these deductions.
Furthermore, there are situations when indirect expenses, those related to the maintenance of the entire house such as insurance and general repairs, can be partially deductible based on the percentage of the home devoted to business use. As always, to ensure compliance with IRS regulations and to understand the full scope of what can be deducted, it's advisable to consult a tax professional or refer to IRS guidelines.