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Tax Form 8829 Help

Part of Your Home Used for Business: Tax Form 8829 - Part I

Generally, the part of your home used for business is figured on a square footage basis.

  1. Determine the area of your home office or the area you use for storage of inventory or product samples. Put the square footage (area) of your home office on line 1 of Form 8829.

  2. Next, determine the total area of your home and enter this figure on line 2 of Form 8829.

  3. For line 3, divide the area of your home office (line 1) by the total area of your home (line 2). Enter the result as a percentage.

 

Methods of determining business use of home office

You may also use any other reasonable method to determine the percentage of your home office. If all the rooms in your home are approximately the same size, you can determine the percentage of your home office based on the total number of your rooms.

 

Day care providers help on Form 8829

The next part of Part I of Form 8829 deals with day care providers. If this does not apply to you, enter the percentage of line 3 on line 7. If you are a day care provider, follow the instructions on lines 4-7.

Basically:

  1. you are figuring the percentage of time your business operates during the year (line 6) and then

  2. you are determining the business percentage by multiplying the percentage of time your business operates by the percentage of space in your home it operates in.

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