Yeah, a HOD is fairly risky. Due to the stringent rules, it's a high audit potential item. Don't fear an audit if your ducks are lined up and everything is fully documented but if there are any chinks in the armor you might want to give it a pass.
An HOD is a real mess if you own your home since you have to deal with depreciation and depreciation recapture when you sell. That's an unexpected hit and applies even if you qualify to exclude the gain on the sale a personal residence. The portion of the gain attributable to the business use is also not eligible for the exclusion, compounding the pain.
I have a home office but passed on the HOD. The less than 5% of my home used for the office generated a paltry $80 tax savings and would have required about 30 hours of work each year to keep all of the records straight. I have not worked for $2.66 an hour since the late 1960s or early 1970s and damned sure am not going to start now!
Contrary to a couple of uninformed responses, a home office does NOT need to be an entire room! You can use a portion of a room, but are limited to the square footage dedicated exclusively to business use over the square footage of your home. For example, if you use a corner of a spare bedroom for your home office and the desk, filing cabinet, etc take up 60 square feet and your home is 1,500 square feet, the percentage of your costs attributable to the home office would be 60/1,500 or 3.125%