Form 8829
Expenses for Business Use of Your Home
The federal form used to compute the home office deduction by allocating actual home expenses to the business-use percentage of the home.
Who Files Form 8829
Self-employed taxpayers (Schedule C filers, partners using the home for partnership business, statutory employees) who use part of their home regularly and exclusively for business as the principal place of business. W-2 employees cannot claim a home office deduction under current law.
What Form 8829 Reports
Form 8829 calculates the actual-expense method: business-use percentage of mortgage interest, property tax, utilities, insurance, repairs, and depreciation, plus directly allocable expenses. Alternatively, the simplified method (claimed directly on Schedule C without Form 8829) deducts $5 per square foot up to 300 square feet ($1,500 maximum). Carryover provisions apply when the deduction exceeds gross income from the home-business use.
Key Deadlines
- Filed with the annual Form 1040 by April 15 (or October 15 with extension)
Common Mistakes
- Failing the regular and exclusive use test (using the space for any personal purpose disqualifies it)
- Claiming the home office deduction as a W-2 employee (not allowed under TCJA)
- Forgetting depreciation recapture on sale of the home for years the home office was claimed
- Mixing simplified method one year and actual method the next without recomputing depreciation
Best Practices
- Document the regular and exclusive use of the home office. Photos with date stamps, a measured floor plan, and a separate phone line strengthen the audit position.
- Compare the simplified method ($5/sq ft, max 300 sq ft, $1500 cap) to the actual method each year. For larger spaces or higher home costs, actual usually wins by a wide margin.
- Plan for depreciation recapture on home sale. Section 121 exclusion does not cover depreciation claimed; that portion is taxed at up to 25 percent on sale.
- For partial-year home office use, prorate the deduction by months. A mid-year start or end is documented through utility-bill statements.
- Keep records for at least 7 years after sale of the home. The depreciation recapture is computed against years of business use.
Related TS CPA Service
Individual Tax Preparation
Tailored and accurate tax preparation, because your financial situation deserves more than a template.
Learn how TS CPA handles Form 8829Related Tax Forms
Related Tax Terms
Home Office Deduction
A deduction for the business-use portion of a home, available to self-employed taxpayers who use part of their home regularly and exclusively for business.
Schedule C (Profit or Loss from Business)
The federal tax form filed with Form 1040 to report income and expenses of a sole proprietorship or single-member LLC treated as a disregarded entity.
Self-Employment Tax
The Social Security and Medicare tax (15.3% combined) paid by self-employed taxpayers on their net earnings from self-employment.
Related Articles
Home Office Deduction: IRS Rules and Methods for 2026
Self-employed? IRC §280A lets you deduct a home office — but only if you meet the exclusive use test. Form 8829 vs. simplified method explained for 2026.
Bonus Depreciation 2026: Section 168(k) Guide
100% bonus depreciation is back under OBBBA for assets placed in service after Jan 19, 2025. Section 168(k) and 179 strategy.
Small Business Bookkeeping and Accounting
Small business bookkeeping essentials: bank reconciliations, financial statements, cash flow, and tax-ready records.
1099 Deductions and Compliance Guide
Top 1099 deductions, compliance rules, mileage write-offs, and recordkeeping tips for freelancers, contractors, and self-employed taxpayers.
Need help with Form 8829?
A licensed CPA reviews your situation and provides a flat-rate quote. Free, no-obligation, same-day response.
Get Your Free Quote