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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8829

Expenses for Business Use of Your Home

Section references are to the Internal Revenue Code unless
otherwise noted. Who Can Deduct Expenses for
Business Use of a Home
Future Developments Generally, you can deduct business expenses that apply to a
part of your home only if that part is exclusively used on a regular
For the latest information about developments related to Form
basis:
8829 and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form8829. • As your principal place of business for any of your trades or
businesses;
• As a place of business used by your patients, clients, or
Reminders customers to meet or deal with you in the normal course of your
trade or business; or
Expired tax benefits. The deduction for mortgage insurance • In connection with your trade or business if it is a separate
premiums treated as mortgage interest under section 163(h)(3) structure that is not attached to your home.
(E), and formerly reported on lines 10 and 16 as deductible
mortgage interest and excess mortgage interest, respectively, As explained later, exceptions to the exclusivity requirement
expired on December 31, 2021. Also, the special recovery apply to space used on a regular basis for:
periods for qualified Indian reservation property, formerly • Storage of inventory or product samples, and
included on line 41, expired on December 31, 2021. • Certain daycare facilities.
Simplified method used for 2022. If you used the simplified
method for 2022 but are not using it for 2023, you may have Principal Place of Business
unallowed expenses from a prior year Form 8829 that you can In determining whether the office in your home qualifies as your
carry over to your 2023 Form 8829. See the instructions for lines principal place of business, you must consider the following two
25 and 31. items.
• The relative importance of the activities performed at each
place where you conduct business.
General Instructions • The amount of time spent at each place where you conduct
business.
Purpose of Form
Your home office will qualify as your principal place of
Use Form 8829 to figure the allowable expenses for business business if you meet the following requirements.
use of your home on Schedule C (Form 1040) and any carryover You use it exclusively and regularly for administrative or
to 2024 of amounts not deductible in 2023. •
management activities of your trade or business.
Use a separate Form 8829 for each home you used for the • You have no other fixed location where you conduct
business during the year. substantial administrative or management activities of your trade
or business.
You must meet specific requirements to deduct expenses for
the business use of your home. Even if you meet these Administrative or management activities. There are many
requirements, your deductible expenses may be limited. Part IV activities that are administrative or managerial in nature. The
is used to figure any allowable carryover of expenses that are following are a few examples.
more than the limit. For details, see Pub. 587. • Billing customers, clients, or patients.
• Keeping books and records.
Who cannot use Form 8829. Do not use Form 8829 in the • Ordering supplies.
following situations. • Setting up appointments.
• You are claiming expenses for business use of your home as a • Forwarding orders or writing reports.
partner or you are claiming these expenses on Schedule F
(Form 1040). Instead, complete the Worksheet To Figure the Administrative or management activities performed at oth-
Deduction for Business Use of Your Home in Pub. 587. (You er locations. The following activities performed by you or
cannot claim expenses for business use of your home as an others will not disqualify your home office from being your
employee.) principal place of business.
• All of the expenses for business use of your home are • You have others conduct your administrative or management
properly allocable to inventory costs. Instead, figure these activities at locations other than your home. For example,
expenses in Schedule C, Part III. another company does your billing from its place of business.
• You have elected to use the simplified method for this home • You conduct administrative or management activities at
for 2023. If you had more than one home during the year that you places that are not fixed locations of your business, such as in a
used for business, you can use the simplified method for only car or a hotel room.
one home. Use Form 8829 to claim expenses for business use of • You occasionally conduct minimal administrative or
the other home. For more information about the simplified management activities at a fixed location outside your home.
method, see the Instructions for Schedule C and Pub. 587. • You conduct substantial nonadministrative or
nonmanagement business activities at a fixed location outside
your home. For example, you meet with or provide services to
customers, clients, or patients at a fixed location of the business
outside your home.

Jul 18, 2023 Cat. No. 15683B

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• You have suitable space to conduct administrative or Line 4
management activities outside your home, but choose to use Enter the total number of hours the facility was used for daycare
your home office for those activities instead. during the year.
More information. For information on other ways to qualify to Example. Your home is used Monday through Friday for 12
deduct business use of the home expenses, see Pub. 587. hours per day for 250 days during the year. It is also used on 50
Saturdays for 8 hours per day. Enter 3,400 hours on line 4 (3,000
Storage of Inventory or Product Samples hours for weekdays plus 400 hours for Saturdays).
You can also deduct expenses that apply to space within your
home used on a regular basis to store inventory or product Line 5
samples from your trade or business of selling products at retail If you started or stopped using your home for daycare in 2023,
or wholesale. Your home must be the only fixed location of your you must prorate the number of hours based on the number of
trade or business. days the home was available for daycare. Do not enter 8,760.
Instead, multiply 24 hours by the number of days available and
Daycare Facilities enter the result.
If you use space in your home on a regular basis in the trade or
business of providing daycare, you may be able to deduct the Part II
business expenses even though you use the same space for
nonbusiness purposes. To qualify for this exception, you must Line 8
have applied for (and not have been rejected), been granted If all the gross income from your trade or business is from the
(and still have in effect), or be exempt from having a license, business use of your home, enter on line 8 the amount from
certification, registration, or approval as a daycare center or as a Schedule(s) C, line 29, plus any gain derived from the business
family or group daycare home under state law. use of your home and shown on Form 8949 (and included on
Schedule D (Form 1040)) or Form 4797, minus any loss shown
Expenses Related to Tax-Exempt Income on Form 8949 (and included in Schedule D) or Form 4797 that is
Generally, you cannot deduct expenses that are allocable to allocable to the trade or business in which you use your home
tax-exempt income. However, if you receive a tax-exempt but is not allocable to the use of the home. If you file more than
parsonage allowance or a tax-exempt military housing one Form 8829, include only the income earned and the
allowance, your expenses for mortgage interest and real deductions attributable to that income during the period you
property taxes are deductible under the normal rules. No owned the home for which Part I was completed.
deduction is allowed for other expenses allocable to the
tax-exempt allowance. If some of the income is from a place of business other than
your home, you must first determine the part of your gross
income (Schedule C, line 7, and gains from Form 8949,
Specific Instructions Schedule D, and Form 4797) from the business use of your
home. In making this determination, consider the amount of time
Part I you spend at each location as well as other facts. After
determining the part of your gross income from the business use
Lines 1 and 2 of your home, subtract from that amount the total expenses
To determine the area on lines 1 and 2, you can use square feet shown on Schedule C, line 28, plus any losses shown on Form
or any other reasonable method if it accurately figures your 8949 (and included in Schedule D) or Form 4797 that are
business percentage on line 7. allocable to the trade or business in which you use your home
but that are not allocable to the use of the home. Enter the result
Do not include on line 1 the area of your home you used to on Form 8829, line 8.
figure any expenses allocable to inventory costs. The business
percentage of these expenses should have been taken into Columns (a) and (b)
account on Schedule C, Part III.
Enter as direct or indirect expenses only expenses for the
Special Computation for Certain Daycare Facilities business use of your home (that is, expenses allowable only
because your home is used for business). If you did not operate
If the part of your home used as a daycare facility includes areas a business for the entire year, you can deduct only the expenses
used exclusively for business as well as other areas used only paid or incurred for the portion of the year you used your home
partly for business, you cannot figure your business percentage for business. Other expenses not allocable to the business use
using Part I. Instead, follow these three steps. of your home, such as salaries, supplies, and advertising, are
1. Figure the business percentage of the part of your home deductible elsewhere on Schedule C and should not be entered
used exclusively for business by dividing the area used on Form 8829.
exclusively for business by the total area of the home. Direct expenses benefit only the business part of your home.
2. Figure the business percentage of the part of your home They include painting or repairs made to the specific area or
used only partly for business by following the same method used rooms used for business. Enter 100% of your direct expenses on
in Part I of the form, but enter on line 1 of your computation only the appropriate line in column (a).
the area of the home used partly for business.
3. Add the business percentages you figured in the first two Indirect expenses are for keeping up and running your entire
steps and enter the result on line 7. Attach a statement with your home. They benefit both the business and personal parts of your
computation and enter “See attached computation” directly home. Generally, enter 100% of your indirect expenses on the
above the percentage you entered on line 7. appropriate line in column (b).
Exception. If the business percentage of an indirect expense
is different from the percentage on line 7, enter only the business
part of the expense on the appropriate line in column (a), and
leave that line in column (b) blank. For example, your electric bill

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is $800 for lighting, cooking, laundry, and television. If you Excess casualty losses. See the instructions for line 29,
reasonably estimate $300 of your electric bill is for lighting and later, to deduct the part of your casualty losses for business use
you use 10% of your home for business, enter $30 on line 21 in of your home not allowed because of the limits on deducting
column (a). Do not make an entry on line 21 in column (b) for any casualty losses as a personal expense, including any losses that
part of your electric bill. are not the result of a federally declared disaster.
Mortgage interest reported on line 10. If you are claiming the
Lines 9, 10, and 11 standard deduction, do not report an amount on line 10. If you
Use lines 9, 10, and 11 for business use of the home expenses itemize your deductions, figure the amount to include in column
that would have been deductible as a personal expense if you (b) of line 10 as follows.
had not used your home for business. These expenses include
certain casualty losses, mortgage interest, and real estate taxes. Step 1. Treat all the mortgage interest you paid as a personal
expense and figure the amount that would be deductible as an
Taxpayers claiming the standard deduction. If you claim the itemized deduction on Schedule A. See Pub. 936 for more
standard deduction, you will not include any mortgage interest or information about figuring the home mortgage interest deduction
real estate taxes on lines 10 and 11; instead, you will claim the and the limits that may apply.
entire business use of the home portion of those expenses using Step 2. Include in column (b) of line 10 the amount of
lines 16 and 17. If you are not increasing your standard deductible mortgage interest figured in Step 1 that is attributable
deduction by a net qualified disaster loss, then you will not to the home in which you conducted the business.
include any casualty losses on line 9; instead, you will claim the
entire business use of the home portion of your casualty losses Because the limits on deducting mortgage interest as a
on line 29. If you are filing Schedule A to increase your standard personal expense are figured using all loans secured by your
deduction by a net qualified disaster loss, see Casualty losses home(s), do not claim mortgage interest in column (a) as a direct
reported on line 9, later. expense, even if you use a separate structure in your home in
connection with your trade or business.
You may prefer to itemize your deductions on Mortgage interest reported on Schedule A. When you
TIP Schedule A to claim amounts on lines 9, 10, and 11, figure your itemized deduction for mortgage interest on
even if your total personal deductions are less than the Schedule A, include the following amounts of deductible
standard deduction. mortgage interest that you figured in Step 1 to the extent they are
not deducted on another form, such as Schedule E as a rental
Casualty losses reported on line 9. Figure the amount to expense.
include in column (b) of line 9 as follows. • The amount of deductible mortgage interest you figured in
Step 1. Complete a worksheet version of Section A of Form Step 1 that is not attributable to the home in which you
4684 treating all your casualty losses (and gains) as personal conducted the business.
expenses. If you are itemizing your deductions, when completing • The personal portion of deductible mortgage interest you
line 17 of this worksheet version of Form 4684, enter 10% of your included in column (b) of line 10. For example, if your business
adjusted gross income excluding the gross income and percentage on line 7 is 30%, 70% of the amount you included in
deductions attributable to the business use of the home. Do not column (b) of line 10 is deductible as an itemized deduction on
file this worksheet version of Form 4684; instead, keep it for your Schedule A.
records. You will complete a separate Form 4684 to attach to Excess mortgage interest. See the instructions for line 16,
your return using only the personal portion of your casualty later, to deduct the part of your mortgage interest from loans
losses (and gains) for Section A. used to buy, build, or substantially improve the home in which
Step 2. Include in column (b) of line 9 the loss amounts from you conducted business that is not allowed on line 10 because
lines 15 and 18 of this worksheet version of Form 4684 that are of the limits on deducting home mortgage interest as a personal
attributable to the home in which you conducted the business expense.
and are the result of a federally declared disaster. If you are Real estate taxes reported on line 11. If you are claiming the
claiming an increased standard deduction instead of itemizing standard deduction, do not report an amount on line 11. If you
your deductions, only use a net qualified disaster loss on line 15 itemize your deductions, figure the amount to include on line 11
of the worksheet version of Form 4684 for this Step 2. as follows.
See the instructions for line 35, later, for the business use of Step 1. If the total of your state and local income (or, if elected
the home casualty losses that you must include in Section B of on your Schedule A, general sales) taxes, real estate taxes, and
the separate Form 4684 you attach to your return. personal property taxes is not more than $10,000 ($5,000 if
Casualty losses reported on Schedule A. Use only the married filing separately), enter all the real estate taxes
personal portion of your casualty losses (and gains) when attributable to the home in which you conducted business in
completing Section A of the separate Form 4684 you attach to column (b) of line 11.
your return. The separate Form 4684 you attach to your return is
Step 2. If you do not meet the condition of Step 1, use the
used to figure the casualty losses you can include on line 15 of
following worksheet to figure the amount to include in column (a)
Schedule A and the net qualified disaster losses you can include
of line 11.
on line 16 of Schedule A.

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Line 11 Worksheet Line 19
If you rent rather than own your home, include the rent you paid
1. Enter your state and local income taxes (or, if you elect on line 19, column (b).
on Schedule A, your state and local general sales
taxes) that are personal expenses . . . . . . . . . 1. If your housing is provided free of charge and the value of the
2. Enter all the state and local real estate taxes you paid housing is tax exempt, you cannot deduct the rental value of any
on the home in which you conducted business . . 2.
portion of the housing.
3. Enter any other state and local real estates taxes you
paid that are a personal expense and not included on Line 22
line 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter your state and local personal property taxes that Include on this line any 2023 operating expenses not included on
are a personal expense . . . . . . . . . . . . . . . 4. lines 9 through 21.
5. Add lines 1 through 4 . . . . . . . . . . . . . . . . 5.
6. Multiply line 2 by the percentage on Form 8829, Line 25
line 7 . . . . . . . . . . . . . . . . . . . . . . . . . 6. Enter any amount from your 2022 Form 8829, line 43.
7. Subtract line 6 from line 5 . . . . . . . . . . . . . . 7.
If you did not file a 2022 Form 8829, then your carryover of
8. Subtract line 7 from $10,000 ($5,000 if married filing prior year operating expenses is the amount of operating
separately). If zero or less, enter -0- . . . . . . . . 8.
expenses shown in Part IV of the last Form 8829, if any, that you
9. Real estate taxes reported on line 11. Enter the filed to claim a deduction for business use of the home.
smaller of line 6 or line 8 here and in column (a) of
Form 8829, line 11 . . . . . . . . . . . . . . . . . . 9. For example, if you filed a 2021 Form 8829 and you used the
10. Excess real estate taxes reported on line 17. simplified method for 2022 but are not using it for 2023, enter the
Subtract line 9 from line 6 . . . . . . . . . . . . . . 10. amount from line 6a of your 2022 Simplified Method Worksheet
(or line 43 of your 2021 Form 8829).

Real estate taxes reported on Schedule A. When you Line 29
figure your itemized deduction for state and local taxes on
Schedule A, only include the personal portion of your real estate Multiply the casualty losses attributable to the home in which you
taxes on line 5b of Schedule A. conducted business that are in excess of the amount reported on
line 9 (if any) by the business percentage of those losses and
Excess real estate taxes. See the instructions for line 17, enter the result.
later, to deduct the part of your real estate taxes for the home in
which you conducted business that is not allowed on line 11 Line 31
because of the limitation on deducting state and local taxes as a
personal expense. Enter any amount from your 2022 Form 8829, line 44.
If you did not file a 2022 Form 8829, then your carryover of
Line 16 prior year excess casualty losses and depreciation is the amount
Taxpayers claiming the standard deduction. If you are of excess casualty losses and depreciation shown in Part IV of
claiming the standard deduction, enter all the home mortgage the last Form 8829, if any, that you filed to claim a deduction for
interest paid for loans used to buy, build, or substantially improve business use of the home.
the home in which you conducted business in column (b) of For example, if you filed a 2021 Form 8829 and you used the
line 16. Do not include mortgage interest on a loan that did not simplified method for 2022 but are not using it for 2023, enter the
benefit your home (for example, a home equity loan used to pay amount from line 6b of your 2022 Simplified Method Worksheet
off credit card bills, to buy a car, or to pay tuition costs). (or line 44 of your 2021 Form 8829).
Taxpayers itemizing deductions on Schedule A. If the
amount you figured in Step 1 under Mortgage interest reported Line 35
on line 10, earlier, was less than the full amount of interest you Enter this amount on Form 4684, line 27, and enter "See Form
paid because of the limits on deducting home mortgage interest 8829" above line 27.
as a personal expense, include the excess attributable to the
loans used to buy, build, or substantially improve the home in Line 36
which you conducted business in column (b) of line 16. If your home was used in more than one business, allocate the
Example. If you paid $15,000 of home mortgage interest on amount shown on line 36 to each business using any method
loans used to buy, build, or substantially improve the home in that is reasonable under the circumstances. For each business,
which you conducted business but would only be able to deduct enter on Schedule C, line 30, only the amount allocated to that
$12,000 on Schedule A because of the limits that apply to business.
deducting home mortgage interest as a personal expense,
include $3,000 ($15,000 − $12,000 = $3,000) in column (b) of Part III
line 16.
Lines 37 Through 40
Line 17
Enter on line 37 the cost or other basis of your home (including
Taxpayers claiming the standard deduction. If you are land), or, if less, the fair market value of your home on the date
claiming the standard deduction, enter all the real estate taxes you first used the home for business. Do not adjust this amount
paid on the home in which you conducted business in column (b) for depreciation claimed or changes in fair market value after the
of line 17. year you first used your home for business.
Taxpayers itemizing deductions on Schedule A. If you used Enter on line 38 the cost or other basis of the land on which
the Line 11 Worksheet to figure the amount to include in column your home sits, or, if less, the fair market value of the land on the
(a) of line 11, then include the amount from line 10 of the Line 11 date you first used the home for business. Do not adjust this
Worksheet in column (a) of line 17; otherwise, do not enter an amount for changes in fair market value after the year you first
amount on line 17. used your home for business.

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Attach your own statement showing the cost or other basis of
additions and improvements, used at least partially for business, IF additions and improvements THEN figure the depreciation
were placed in service... allowed on these expenditures by
that were placed in service after you began to use your home for multiplying the business part of
business. Do not include any amounts on lines 37 through 40 for their cost or other basis by...
these expenditures. Instead, see the instructions for line 42.
during 2023 (but after you began the percentage in the line 41
Line 41 using your home for business), instructions for the month placed in
service.
IF you first used your home for THEN enter the following after May 12, 1993, and before 2023 2.564%.
business in the following month in percentage on line 41... (except as noted below),
2023... after May 12, 1993, and before 1994, the percentage given in
and you either started construction or Pub. 946.
January 2.461% had a binding contract to buy or build
February 2.247% that home before May 13, 1993,
March 2.033% after May 12, 1993, and you stopped the percentage given in Pub. 946 as
using your home for business before adjusted by the instructions under
April 1.819% the end of the year, Sale or Other Disposition Before the
May 1.605% Recovery Period Ends in that
publication.
June 1.391%
after 1986 and before May 13, 1993, the percentage given in
July 1.177% Pub. 946.
August 0.963% before 1987, the percentage given in
September 0.749% Pub. 534.
October 0.535%
November 0.321% Attach a statement showing your computation and include the
December 0.107% amount you figured in the total for line 42. Enter “See attached”
below the entry space.
Complete and attach Form 4562, Depreciation and
Amortization, only if:
• You first used your home for business in 2023, or
IF you first used your home for THEN the percentage to enter on • You are depreciating additions and improvements placed in
business... line 41 is... service in 2023.
after May 12, 1993, and before 2023 2.564%. If you first used your home for business in 2023, enter the
(except as noted below), amounts from Form 8829, lines 40 and 42, in columns (c) and (g)
of line 19i on Form 4562. In column (b) of line 19i, enter the
after May 12, 1993, and before 1994, the percentage given in month and year you first used your home for business. Do not
and you either started construction or Pub. 946. include the amount from Form 8829, line 42, on Schedule C,
had a binding contract to buy or build
that home before May 13, 1993, line 13.
after May 12, 1993, and you stopped the percentage given in If you are depreciating additions and improvements placed in
using your home for business before Pub. 946 as adjusted by the service in 2023, enter in column (b) of line 19i on Form 4562 the
the end of the year, instructions under Sale or Other month and year the additions or improvements were placed in
Disposition Before the Recovery service. Enter the business basis of the additions or
Period Ends in that publication. improvements in column (c) and the depreciation allowable on
after 1986 and before May 13, 1993, the percentage given in the additions or improvements in column (g). Do not include the
Pub. 946. amount entered in column (g) on Schedule C, line 13.
before 1987, the percentage given in
Pub. 534, Depreciating Property Part IV
Placed in Service Before 1987. If your expenses are greater than the current year's limit, you can
carry over the excess to 2024. The carryover will be subject to
the deduction limit for that year, whether or not you live in the
same home during that year.
Simplified method used for 2022. If you used the simplified
method for 2022, use the preceding table to find the percentage Line 43
to enter. Figure the amount of operating expenses you can carry over to
2024 by subtracting line 27 from line 26. If the result is zero or
Example. You first used your home for business in 2022 and less, you have no amount to carry over.
used the simplified method for that year. For 2023, you want to
use Form 8829 instead. Enter 2.564%. Line 44
Line 42 Figure the amount of excess casualty losses and depreciation
you can carry over to 2024 by subtracting line 33 from line 32. If
If no additions and improvements were placed in service after the result is zero or less, you have no amount to carry over.
you began using your home for business, multiply line 40 by the
percentage on line 41. Enter the result on lines 42 and 30. Paperwork Reduction Act Notice. For the Paperwork
Reduction Act Notice, see the Instructions for Form 1040.

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