Final answer:
Deductible expenses for the business use of a home include mortgage interest and property taxes, while utilities and depreciation are only partially deductible based on the percentage of home business use.
Step-by-step explanation:
The deductible expenses with respect to the business use of a home, subject to any applicable deduction limit, are usually mortgage interest and property taxes. These are typically considered direct expenses and are often fully deductible. Expenses like utilities and depreciation are generally considered indirect expenses, which are deductible based on the percentage of the home that is used for business purposes. Calculating depreciation can be complex and often requires understanding IRS regulations and possibly assistance from a tax professional.
Homeownership provides the opportunity to build equity and receive a potential financial return either from living in the home ('housing services') or through renting it out. Additionally, certain aspects of homeownership can enhance one's credit score and provide tax benefits such as the deduction of mortgage interest.