What You Need to Know in Order to File Form 8829 2024-2025

If you run a company and fully or partially use your home for business purposes, use template 8829 to determine and track whether or not you qualify for deductions. In order to claim for a deduction, you need to meet specific requirements and if you do, take note that the amount varies case by case.

When Do I Need to File Form 8829?

You can claim for a deduction via this blank if you use your home for business purposes on a regular basis. Take a look below to see more details.

Do you use your home:

1. as a place for company meetings and interaсtions;
2. as the principal location for trade work;
3. as an extension of your company?

Exceptions to this rule relate to:

1. Storing goods/products;
2. Using your home as a location for a daycare service.

What Kind of Expenses Can be Deducted on Form 8829?

With this sample, you can deduct both direct and indirect expenses. Direct ones relate directly to how your place of residence connects to the activity of your business. They include money spent on any form of improving your house to make it suitable for working in. Indirect expenses are those that you pay to maintain your place of residence, e.g., utilities, insurance, etc. For indirect costs, you have to use a formula to calculate the percentage of your house you’re using for business purposes.