home office deduction

You calculate the home office deduction first.

Once you've entered all your deductions, subtract them from your gross income to get your net Schedule C profit or loss.   When filing for deductions for your home office, it’s important to note that you can’t deduct business expenses in excess of the gross income limitation.   If the internet is used only in your Home Office, you would enter this as a Home Office expense shared with the rest of your home. If you paid for internet that was used only by your business, you would report as an expense separately on your Schedule C.

Here is a great resource relating to home office deductions:  Can I take the home office deduction?