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Tax Preparation online help - Tax Forms for Home office expenses

Whether you are working full time or part time or a hobby intended for profit using your home as a home office incurring home office expenses, you may be able to deduct home office tax expenses from your income tax. These home office expenses, if not deducted as home office expenses, will be your personal expenses from your business.

If you are planning to file for home office expenses deduction, you will need the following tax forms:

Tax forms:

  • Schedule C (profit or loss from your home office business)

  • Form 4562 (Depreciation and Amortization)

  • Form 4684 (Casualty and Theft losses)

  • Form 8829 (Business Use of Your Home)

Home office expenses deduction is calculated on IRS tax form 8829. The resulting home business tax expenses deduction figure is then entered on the IRS tax form Schedule C line 30.

What is the amount of home office tax expenses deduction allowed?

The allowable home office tax expenses deduction is limited to the gross income generated from the use of the home business, reduced first by any expenditures otherwise deductible, such as taxes and interest, and then reduced by other deductible trade or business expenses, such as prorated utilities and depreciation.

Any disallowed home office tax expenses can be carried forward to future years, subject to the gross income limitation in those years.

You are not entitled to home office tax expenses deductions for expenses attributable to the rental of all or part of your home to your employer for performing services as an employee. An independent contractor is treated as an employee under these rules.