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Form 8829: Expenses for Business Use of Your Home - Page 1
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Form 8829: Expenses for Business Use of Your Home

Calculates the home office deduction for self-employed people using the regular method, based on the percentage of the home used regularly and exclusively for business.

2025 version
Source: Internal Revenue Service (IRS)

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Instructions for filling out Form 8829: Expenses for Business Use of Your Home

This template is used for official filing and documentation. Below are detailed instructions for completing, requirement details, and submission rules.

Who needs to fill out this document?

This form is designed for use by legal entities, individuals, or authorized representatives in the following cases:

  • Freelancers and consultants working from home.
  • Sole proprietors filing Schedule C.
  • Home daycare providers.

What you will need before starting

Before filling out the interactive form, prepare the following details and documents:

1. Square footageArea used for business and total area of the home.
2. Home expensesMortgage interest, rent, utilities, insurance and repairs.
3. Depreciation basisPurchase price, land value and improvements for owned homes.
4. Business incomeGross income limit from Schedule C.

Step-by-step filling process

  1. Part I: Business percentage: Divide business area by total area.
  2. Part II: Allowable deduction: Apply the percentage to direct and indirect expenses.
  3. Part III: Depreciation: Compute depreciation for owned homes.
  4. Carry over: Carry unused amounts to next year; enter the deduction on Schedule C.

Frequently Asked Questions (FAQ)

What does 'regular and exclusive' mean?

The space is used only for business and on a continuing basis, with exceptions for daycare and inventory storage.

Is there a simpler method?

Yes. The simplified method is $5 per square foot up to 300 square feet, with no Form 8829.

Can employees use Form 8829?

No. Employees can't deduct home office expenses on their federal return under current law.

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