Form 8829

Description

Form 8829 is used to figure the allowable expenses for business use of your home on Schedule C or Schedule A and any carryover to future years of amounts not deductible in the current year.

A home office deduction is available for your business if you use a portion of your home exclusively on a regular basis as your principal place of business. Exclusively and on a regular basis means that if you or your family use your home office for personal use as well as business, you are not able to take the home office deduction. However, if you use a portion of a room exclusively for business and a portion of the room for personal use, you can still take the home office deduction on that portion of the room used for business. The principal place of business test is met if you perform administrative or managerial activities in your home office for your business and there is no other fixed location where you conduct substantial administrative or managerial activities.

If you use space in your home on a regular basis in the trade or business of providing day care, you may be able to deduct the business expenses even though you use the same space for nonbusiness purposes. To qualify for this exception, you must have applied for (and not have been rejected), been granted (and still have in effect), or be exempt from having a license, certification, registration, or approval as a day-care center or as a family or group day-care home under state law.

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