Tax Forms

Form 8829, Using Home as Business

The form for seeing how much you can deduct by working from home
tl;drForm 8829 helps you determine how much of your home is used for business as well as allowable expenses for the business use of your home.

What is form 8829?

This form helps you calculate expenses for the business use of your home or apartment as well as the total allowable deductions. You can use the form to guide the expenses you outline for using your home as a place of business in Schedule C to form 1040.

You’ll determine the percentage of your home used for business by dividing the area of the home you use for business by the entire home area (in square feet). You’ll also list all legitimate business expenses for your home as a business place, including things like rent, insurance, utilities, repairs and maintenance, home depreciation, and mortgage interest.

The first part, determining the percentage, will inform how much of the second part, expenses, you can deduct. If, for example, you use 10% of your home for business, then you’ll be able to deduct 10% of your home business expenses.

Do you qualify for form 8829?

The IRS requires that the space in your home be regularly and exclusively used for business. The space in your home should also be your only place of business (ie, where you meet clients, do administrative work, etc)