Business Use of Home Expenses
What is the tax deduction for the business
use of home?
If you use a part of your home for business,
even if it is not your full time job but a secondary one, you
may be able to deduct the expenses for business use of your
home from your business income.
What expenses can I include in the tax
deductions for business use of home expenses?
If you qualify for this deduction, you can
include as business expense a portion of your:
If you itemized your deductions, you must
reduce your total mortgage interest and real estate taxes on
Schedule A by the amount claimed for the business use of your
Net income limitations for business use of
home expenses deductions
You may also deduct, as a business expense,
a portion of the depreciation of the home if you own it. Your
business use of home deductions that would normally not be
deductible to an individual (e.g. depreciation, insurance,
utilities, etc.) cannot be greater than the net income of your
business. Deductions that are normally deductible to an
individual (e.g. mortgage interest and real estate taxes) are
not subject to net income limitations.
When to use the Form 8829?
Expenses for Business Use of Your Home, is the form
used o figure the deduction, which is then entered on line 30
of Schedule C. form 8829 is shown on the following page. For
more information on the business use of your home, consult the
IRS Publication 587, Business
Use of Your Home.