Form 8829: Expenses for Business Use of Your Home

Form 8829 is generally used by eligible taxpayers to calculate certain expenses related to the business use of a home.

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Introduction

Form 8829, Expenses for Business Use of Your Home, is a federal tax form generally used by eligible taxpayers to calculate certain expenses associated with using part of a home for business purposes. The form generally helps determine the allowable business-use-of-home deduction that may be reported on an applicable federal tax return.

This guide provides general information about Form 8829, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 8829 and its general purpose.

What Is Form 8829?

Form 8829 is generally used to calculate expenses related to the business use of a home. The form generally considers information about the home, the portion used for business, applicable expenses, and other information needed to determine the allowable deduction.

Form 8829 may involve expenses such as mortgage interest, real estate taxes, insurance, utilities, repairs, maintenance, and other applicable home expenses. The specific expenses and calculations that apply can depend on the taxpayer’s home, business activities, records, and other applicable circumstances.

Who Uses Form 8829?

Form 8829 is generally used by eligible individuals who use part of their home for business purposes and meet applicable requirements for claiming business-use-of-home expenses. This may include certain self-employed individuals and other eligible taxpayers.

The requirements can depend on how the home is used, the nature of the taxpayer’s business, the portion of the home used for business, and other applicable circumstances. Not every taxpayer who works from home is necessarily eligible to claim a deduction using Form 8829.

What Information Is Needed?

The information needed to complete Form 8829 generally comes from the taxpayer’s home expense records, business records, tax records, and other supporting documentation. Accurate records can help determine the business-use portion of applicable expenses.

Common information includes:

Home address
Total area of the home
Area used regularly for business
Business-use percentage
Mortgage interest information
Real estate tax information
Insurance expenses
Rent expenses when applicable
Utilities and other applicable expenses
Repairs and maintenance expenses
Depreciation information when applicable
Business income information
Other applicable home-related expenses
Supporting financial and tax records

The specific information required may depend on whether the taxpayer owns or rents the home, the type of business activity, the expenses incurred, the portion of the home used for business, and other applicable circumstances.

How to Fill Out/Complete Form 8829

Form 8829 is generally completed by identifying the home and business-use area, calculating the percentage of the home used for business, entering applicable home expenses, calculating allowable amounts, and reviewing the completed form before reporting the applicable deduction.

The basic process is to gather home and business records, determine the area used for business, calculate the applicable business-use percentage, enter eligible expenses, complete applicable depreciation or other calculations, determine the allowable amount, and review Form 8829 before submitting it with the applicable tax return. Taxpayers should retain a copy of the completed form and supporting records.

Section 1

Enter information about the home and determine the portion of the home used for business. This generally involves identifying the total area of the home and the area used for qualifying business purposes.

The measurements should generally be based on the taxpayer’s home records and the actual area used for business. The taxpayer should review the information carefully to make sure the business-use percentage is calculated accurately.

Section 2

Calculate the applicable percentage of the home used for business. The business-use percentage is generally used to determine the portion of certain home expenses that may be associated with the business.

The calculation should generally be based on the applicable areas of the home and the taxpayer’s qualifying business use. Supporting measurements, records, and other documentation should be retained with the taxpayer’s tax records.

Section 3

Enter applicable direct and indirect expenses related to the home. These may include expenses such as mortgage interest, real estate taxes, insurance, utilities, repairs, maintenance, and other applicable costs.

The expenses should generally be supported by receipts, statements, invoices, financial records, and other documentation. Taxpayers should separate applicable business expenses from personal expenses when completing the form.

Section 4

Calculate the allowable portion of applicable home expenses. Certain expenses may be allocated based on the percentage of the home used for business, while other expenses may receive different treatment depending on their nature.

The calculations should generally be based on the taxpayer’s supporting expense records and applicable business-use information. Taxpayers should review the calculations carefully to help ensure that only applicable amounts are included.

Section 5

Complete applicable depreciation information when required. Taxpayers who own their home may need to consider information about the home’s basis, applicable value, and other information used in calculating depreciation.

The information should generally be supported by purchase records, improvement records, prior tax records, and other applicable documentation. Taxpayers should retain records supporting the amounts used in the depreciation calculation.

Section 6

Complete any additional information and calculations required by Form 8829. This may include information related to business income, limitations, carryover amounts, or other applicable items.

Only information that applies to the taxpayer’s situation should generally be included. Supporting home, business, financial, and tax records should be retained with the completed Form 8829.

Final Review

Review Form 8829 after completing all applicable sections. Check the home information, business-use area, total home area, business-use percentage, home expenses, depreciation information, calculations, and other applicable amounts.

A final review can help identify incorrect or incomplete information before Form 8829 is submitted with the applicable tax return. Taxpayers should retain a copy of Form 8829, home expense records, measurements, receipts, financial records, depreciation records, and supporting tax records with their files.

Common Mistakes

Common Form 8829 mistakes may include using an incorrect business-use percentage, including personal expenses as business expenses, entering incorrect home expense amounts, or failing to properly document the portion of the home used for business. Errors involving home measurements or depreciation information can also affect the calculation.

Other mistakes may include including expenses that do not qualify, failing to retain receipts or supporting records, overlooking applicable limitations, entering incorrect depreciation information, or submitting the form without reviewing the calculations. Comparing Form 8829 with the taxpayer’s home, business, accounting, and tax records before filing can help identify potential errors.

Related IRS Forms

Taxpayers may encounter additional federal tax forms when reporting business income, business expenses, self-employment income, depreciation, and other applicable tax information. Different forms are generally used for different types of federal tax reporting.

Common related forms include:

Form 1040 for individual federal income tax reporting
Schedule C for certain business income and expense reporting
Schedule E for certain supplemental income and loss reporting
Schedule F for certain farming income and expenses
Form 4562 for depreciation and certain business property
Form 4797 for certain sales or exchanges of business property
Schedule SE for certain self-employment tax reporting

The appropriate form depends on the taxpayer’s business activity, income, expenses, property, home ownership, self-employment status, and other applicable circumstances.

Where to File or Submit

Form 8829 is generally submitted with the applicable federal tax return when required. The form is generally used as supporting information for the calculation and reporting of certain business-use-of-home expenses.

Taxpayers should review the applicable filing requirements before submitting Form 8829. A copy of the completed form, home expense records, business records, receipts, financial records, and other supporting documentation should generally be retained for the taxpayer’s files.

Current IRS Form & Instructions

Taxpayers should use the applicable version of Form 8829 and its instructions when calculating expenses associated with the business use of a home. Federal tax forms and requirements can change, so the version used should correspond with the applicable tax period and filing circumstances.

Before submitting Form 8829, taxpayers should review the form and instructions and confirm that the information entered agrees with their home, business, financial, accounting, and tax records. This can help identify potential errors before the form is submitted.

Important Information / Disclaimer

This Form 8829 guide is provided for general informational purposes only and is intended to provide a basic overview of Form 8829 and common information associated with calculating expenses for the business use of a home. This information is not tax, legal, accounting, or financial advice, and Form 8829 requirements can vary depending on the taxpayer, home, business activity, expenses, ownership, and other applicable circumstances.

Taxpayers are responsible for determining their applicable tax, deduction, recordkeeping, filing, and reporting requirements. The information on this page may not cover every situation, exception, or special rule that may apply. When appropriate, taxpayers should consider seeking assistance from a qualified tax professional or other qualified advisor regarding their specific business-use-of-home expenses, deductions, depreciation, or Form 8829 filing requirements.