Corporate Communication - Business - Using IRS Form 8829 to Deduct Expenses for Busines...

IRS Form 8829 is used to claim the allowable expenses that you can deduct for business use of your home on your federal tax return. From Form 8829, you calculate the deduction amount to be inserted on Schedule C (Form 1040). To deduct expenses related to the part of your home used for business, you must meet the following tests:

Exclusive: You must use a specific area of your home only for your trade or business, and the area cannot be used for any other purpose. The area can be a room or other separately identifiable space. The space does not need to be marked off by a permanent partition.

Regular: You must use a specific area of your home for business on a continuing basis, not just occasional or incidental use; or

2. The business part of your home or a separate structure (not attached to your home) must be your principal place of business where you meet or deal with patients, clients, or customers in the normal course of your business. You must conduct the administrative or management activities of your business in your home exclusively and regularly, and you have no other fixed location where you conduct those activities Deductions

You generally cannot deduct expenses that are allocable to tax-exempt income. To calculate deductions, you can use square feet or any other reasonable method to measure the area for the part of your home used for your business. Direct or indirect expenses for the business use of your home can be 100% deductions.

You can deduct the depreciation of the part of your home you use for business by using the cost or the fair market value of your home on the date you first used the home for business. You will need to attach a schedule showing the cost of additions and improvements placed in service after you began to use your home for business. Then you refer to the IRS chart in the instructions booklet for the use of Form 8829 to find the percentage to use to calculate the depreciation deduction.

If your expenses are greater than the current year's limit, you can carry over the excess to the next tax year. For more information on deducting expenses for the business use of the home expenses, see IRS Pub. 587.

You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016

For more information about these and other important business topics and for legal consultation, please visit our website at http://www.IndigoBusinessSolutions.net

Jo Ann Joy is the CEO and owner of Indigo Business Solutions, a legal and business consulting firm that differs from other business consulting firms, because it offers comprehensive legal and business counseling. Jo Ann has a law degree, an MBA, and a degree in Economics, but she is not a traditional attorney. Rather, she is a strategic business attorney who works closely with clients to create and implement strategies that will greatly improve their performance and success.

Jo Ann uses her talents, expertise, and education to inspire enterprising and imaginative people to make their goals a reality and enjoy professional and personal growth. Her background includes commercial and real estate law, accounting, financial planning, mortgages, marketing, product development, and business strategies. She ran a successful business for 10 years, and she has written and given presentations on many different legal and business subjects.

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Using IRS Form 8829 to Deduct Expenses for Business Use of Your Home