Instructions For Form 8829 - Expenses For Business Use Of Your Home

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8829

Expenses for Business Use of Your Home

Principal Place of Business

Section references are to the Internal Revenue Code unless

otherwise noted.

In determining whether the office in your home qualifies as your

Future Developments

principal place of business, you must consider the following two

items.

For the latest information about developments related to Form

The relative importance of the activities performed at each

8829 and its instructions, such as legislation enacted after they

place where you conduct business, and

were published, go to

The amount of time spent at each place where you conduct

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business.

Your home office will qualify as your principal place of

Simplified method used for 2014. If you used the simplified

business if you meet the following requirements.

method for 2014 but are not using it for 2015, you can use any

You use it exclusively and regularly for administrative or

unallowed expenses from 2013 on your 2015 Form 8829. See

management activities of your trade or business.

the instructions for lines 24 and 30.

You have no other fixed location where you conduct

substantial administrative or management activities of your trade

General Instructions

or business.

Purpose of Form

Administrative or management activities. There are many

activities that are administrative or managerial in nature. The

Use Form 8829 to figure the allowable expenses for business

following are a few examples.

use of your home on Schedule C (Form 1040) and any carryover

Billing customers, clients, or patients.

to 2016 of amounts not deductible in 2015.

Keeping books and records.

Ordering supplies.

You must meet specific requirements to deduct expenses for

Setting up appointments.

the business use of your home. Even if you meet these

Forwarding orders or writing reports.

requirements, your deductible expenses may be limited. Part IV

is used to figure any allowable carryover of expenses that are

Administrative or management activities performed at oth

more than the limit. For details, see Pub. 587, Business Use of

er locations. The following activities performed by you or

Your Home.

others will not disqualify your home office from being your

principal place of business.

Who cannot use Form 8829. Do not use Form 8829 in the

You have others conduct your administrative or management

following situations.

activities at locations other than your home. (For example,

You are claiming expenses for business use of your home as

another company does your billing from its place of business.)

an employee or a partner, or you are claiming these expenses

You conduct administrative or management activities at

on Schedule F (Form 1040). Instead, complete the worksheet in

places that are not fixed locations of your business, such as in a

Pub. 587.

car or a hotel room.

All of the expenses for business use of your home are

You occasionally conduct minimal administrative or

properly allocable to inventory costs. Instead, figure these

management activities at a fixed location outside your home.

expenses in Schedule C, Part III.

You conduct substantial nonadministrative or

You have elected to use the simplified method for this home

nonmanagement business activities at a fixed location outside

for 2015. If you had more than one home during the year that

your home. (For example, you meet with or provide services to

you used for business, you can use the simplified method for

customers, clients, or patients at a fixed location of the business

only one home. Use Form 8829 to claim expenses for business

outside your home.)

use of the other home. For more information about the simplified

You have suitable space to conduct administrative or

method, see the Instructions for Schedule C and Pub. 587.

management activities outside your home, but choose to use

Who Can Deduct Expenses for

your home office for those activities instead.

Business Use of a Home

More information. For information on other ways to qualify to

deduct business use of the home expenses, see Pub. 587.

Generally, you can deduct business expenses that apply to a

part of your home only if that part is exclusively used on a regular

Storage of Inventory or Product Samples

basis:

You can also deduct expenses that apply to space within your

As your principal place of business for any of your trades or

home used on a regular basis to store inventory or product

businesses,

samples from your trade or business of selling products at retail

As a place of business used by your patients, clients, or

or wholesale. Your home must be the only fixed location of your

customers to meet or deal with you in the normal course of your

trade or business.

trade or business, or

In connection with your trade or business if it is a separate

Daycare Facilities

structure that is not attached to your home.

If you use space in your home on a regular basis in the trade or

As explained later, exceptions to this rule apply to space

business of providing daycare, you may be able to deduct the

used on a regular basis for:

business expenses even though you use the same space for

Storage of inventory or product samples, and

nonbusiness purposes. To qualify for this exception, you must

Certain daycare facilities.

have applied for (and not have been rejected), been granted

Dec 20, 2015

Cat. No. 15683B

Instructions For Form 8829 - Expenses For Business Use Of Your Home - 2015

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