Instructions for IRS Form 8829 Expenses for Business Use of Your Home

IRS Form 8829 Expenses for Business Use of Your Home

This document contains official instructions for IRS Form 8829 , Expenses for Business Use of Your Home - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8829 is available for download through this link.

FAQ

Q: What is IRS Form 8829?A: IRS Form 8829 is used to claim deductions for the business use of your home.

Q: What expenses can I deduct using Form 8829?A: You can deduct expenses such as mortgage interest, rent, utilities, and repairs directly related to the business portion of your home.

Q: Can I deduct the full amount of my home expenses?A: No, you can only deduct the percentage of your home that is used for business purposes.

Q: How do I calculate the business use percentage?A: To calculate the business use percentage, you divide the square footage used for business by the total square footage of your home.

Q: What supporting documents do I need to keep for Form 8829?A: You should keep records of your home expenses, such as receipts, invoices, and utility bills.

Q: Can I use Form 8829 if I am self-employed?A: Yes, Form 8829 can be used by self-employed individuals, as well as employees who work from home for their employer's convenience.

Q: Are there any limitations on deductions for business use of my home?A: Yes, there are limitations based on your income and the nature of your business.

Q: Can I claim a home office deduction if I have multiple businesses?A: Yes, you can claim the home office deduction for each separate business as long as you meet the requirements.

Q: What happens if I sell my home after claiming the home office deduction?A: If you sell your home, you may have to recapture some of the depreciation claimed in previous years.