Financial Glossary
Form 8829 (Home Office Expenses)
Form 8829 is the IRS form self-employed taxpayers use to calculate the deductible expenses for the business use of their home. It allocates costs such as a portion of rent or mortgage interest, utilities, insurance, and depreciation based on the percentage of the home used regularly and exclusively for business. The form is filed alongside Schedule C and feeds the resulting deduction onto that schedule.
Problem & Application
Many self-employed owners and solo operators run their business from a dedicated home space but never claim the deduction because they fear it triggers audits or find the math confusing. The key requirement is regular and exclusive business use of the space, and accurate records of home expenses and square footage make the calculation straightforward. Done correctly, Form 8829 captures a legitimate deduction that many leave unclaimed.
In Short
Form 8829 turns a portion of your home costs into a legitimate business deduction, provided the space is used regularly and exclusively for the business.