What is Form 8829?
Form 8829 calculates the home office deduction for a space used regularly and exclusively for business, based on actual home expenses. It works with Schedule C.
8829 computes the actual-expense home-office deduction: figure the percentage of your home used exclusively for business, then apply it to rent or mortgage interest, utilities, insurance, and depreciation. The simplified method ($5/sq ft up to 300 sq ft) skips this form entirely and trades a bit of deduction for a lot less paperwork.
Who files it
Sole proprietors who use part of their home for business and want the actual-expense method (rather than the simplified method).
When it's due
Form 8829 is generally due With Form 1040 (April 15). Deadlines can move for weekends and holidays, so confirm the exact date for the current year on IRS.gov.
Key lines and parts
Here's what you'll actually fill in on Form 8829:
- Part I — percentage of home used for business
- Part II — allowable expenses
- Part III — depreciation of your home
- Part IV — carryover of unallowed expenses
How to file
Figure the business-use percentage of your home, apply it to expenses like utilities, insurance and depreciation, and carry the deduction to Schedule C.