1 Your details & qualifying use

Use a separate Form 8829 for each home, with Schedule C and the actual-expense method. It is not for employee, partnership or Schedule F home expenses, or a home using the simplified method for this year. Exclude expenses allocated to inventory costs and tax-exempt income.

2 How much of your home is used?

Use consistent area units. Include only qualifying space, excluding space already allocated to inventory costs.

Enter the areas to calculate your business percentage.

3 Income & home operating expenses

Use Schedule C Line 29 with applicable business-home gains, losses and income-location adjustments under the instructions. This is not gross receipts. Use zero or a minus sign for an applicable loss.

Direct expenses benefit only the business area. Indirect expenses cover the entire home and are multiplied by your business percentage. Enter only expenses for the business-use period, after applicable exclusions. If an expense uses a different percentage, enter its already allocated business amount as direct and leave indirect zero.

4 Mortgage interest & real-estate taxes

Mortgage interest, real-estate taxes and building depreciation do not apply to a rented home. Enter rent in operating expenses above.

With the standard deduction, qualifying mortgage interest and real-estate taxes belong on Lines 16 and 17, not Lines 10 and 11.

Review & download

Line 36 transfers to Schedule C Line 30. Allocate it reasonably if this home serves multiple businesses. Line 35 transfers to Form 4684 separately. Lines 43–44 carry to the next year and are not added to this year’s deduction. Separate returns / worksheets, IRS filing and tax payments are not included. This form has no signature line.

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