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 a form used to report expenses for business use of your home.

Q: What expenses can be reported on IRS Form 8829?
A: Expenses such as utilities, rent or mortgage interest, insurance, and repairs can be reported on Form 8829.

Q: Who can use IRS Form 8829?
A: Self-employed individuals and employees who work from home can use Form 8829 if they meet certain criteria.

Q: What is the purpose of IRS Form 8829?
A: The purpose of Form 8829 is to calculate the deductible expenses for business use of a home.

Q: Can I claim the entire cost of my home as a business expense?
A: No, you can only deduct the portion of expenses related to the area of your home used for business purposes.

Q: What is the simplified method for calculating home office deduction?
A: The simplified method allows you to deduct $5 per square foot of your home office space, up to a maximum of 300 square feet.

Q: What documentation do I need for IRS Form 8829?
A: You should keep records of your home expenses, such as receipts, utility bills, and mortgage statements.

Q: Can I use IRS Form 8829 if I have a separate office outside my home?
A: Generally, Form 8829 is only used if your home is your principal place of business.

Q: What happens if I sell my home after claiming business use?
A: If you sell your home, you may have to report a portion of the gain as taxable income.