What is the definition of “Home-Based Business”?

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From IRS Publication 587 (“Business Use of Your Home”):
Qualifying for a Deduction

Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. Even then, the deductible amount of these types of expenses may be limited. Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home.

To qualify to deduct expenses for business use of your home, you must use part of your home:

Exclusively and regularly as your principal place of business,

Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business,

In the case of a separate structure which is not attached to your home, in connection with your trade or business,

On a regular basis for certain storage use,

For rental use, or

As a daycare facility.

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