Well, I would make sure you talk to your accountant. And there's that whole depreciation issue which I don't fully understand. That's why you better talk with your accountant.

You know about being able to deduct other expenses besides the office equipment and stuff, right?

A home office deduction is one of the major "flags" for an IRS audit. Work with a good CPA to make sure this is the right thing for you to do. Keep in mind that the home office area you write off must be used exclusively for business -- don't have a bed in there that is used by visiting relatives. If you are audited, and the IRS is serious about checking you out, they may actually visit you and want to see your dedicated business space!

Without deducting actual office space you may well be able to write off many of your home office expenses including a portion of your utilities, phone, and much more. Again, the key is a good CPA!