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Department of the Treasury
Internal Revenue Service
2022

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
What’s New 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.

Principal Place of Business
Reminder
In determining whether the office in your home qualifies as your
Simplified method used for 2021. If you used the simplified principal place of business, you must consider the following two
method for 2021 but are not using it for 2022, you may have items.
unallowed expenses from a prior year Form 8829 that you can • The relative importance of the activities performed at each
carry over to your 2022 Form 8829. See the instructions for lines place where you conduct business.
25 and 31. • The amount of time spent at each place where you conduct
business.
General Instructions Your home office will qualify as your principal place of
business if you meet the following requirements.
Purpose of Form • You use it exclusively and regularly for administrative or
Use Form 8829 to figure the allowable expenses for business management activities of your trade or business.
use of your home on Schedule C (Form 1040) and any carryover • You have no other fixed location where you conduct
to 2023 of amounts not deductible in 2022. substantial administrative or management activities of your trade
or business.
Use a separate Form 8829 for each home you used for the
business during the year. Administrative or management activities. There are many
activities that are administrative or managerial in nature. The
You must meet specific requirements to deduct expenses for following are a few examples.
the business use of your home. Even if you meet these • Billing customers, clients, or patients.
requirements, your deductible expenses may be limited. Part IV • Keeping books and records.
is used to figure any allowable carryover of expenses that are • Ordering supplies.
more than the limit. For details, see Pub. 587, Business Use of • Setting up appointments.
Your Home. • Forwarding orders or writing reports.
Who cannot use Form 8829. Do not use Form 8829 in the Administrative or management activities performed at oth-
following situations. er locations. The following activities performed by you or
• You are claiming expenses for business use of your home as others will not disqualify your home office from being your
a partner or you are claiming these expenses on Schedule F principal place of business.
(Form 1040). Instead, complete the Worksheet To Figure the • You have others conduct your administrative or management
Deduction for Business Use of Your Home in Pub. 587. (You activities at locations other than your home. For example,
cannot claim expenses for business use of your home as an another company does your billing from its place of business.
employee.) • You conduct administrative or management activities at
• All of the expenses for business use of your home are places that are not fixed locations of your business, such as in a
properly allocable to inventory costs. Instead, figure these car or a hotel room.
expenses in Schedule C, Part III. • You occasionally conduct minimal administrative or
• You have elected to use the simplified method for this home management activities at a fixed location outside your home.
for 2022. If you had more than one home during the year that • You conduct substantial nonadministrative or
you used for business, you can use the simplified method for nonmanagement business activities at a fixed location outside
only one home. Use Form 8829 to claim expenses for business your home. For example, you meet with or provide services to
use of the other home. For more information about the simplified customers, clients, or patients at a fixed location of the business
method, see the Instructions for Schedule C and Pub. 587. outside your home.

Nov 3, 2022 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
Storage of Inventory or Product Samples (3,000 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 2022,
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 casualty losses as a personal expense, including any losses that
reasonably estimate $300 of your electric bill is for lighting and are not the result of a federally declared disaster.
you use 10% of your home for business, enter $30 on line 21 in
Mortgage interest reported on line 10. If you are claiming the
column (a). Do not make an entry on line 21 in column (b) for any
standard deduction, do not report an amount on line 10. If you
part of your electric bill.
itemize your deductions, figure the amount to include in column
(b) of line 10 as follows.
Lines 9, 10, and 11
Use lines 9, 10, and 11 for business use of the home expenses Step 1. Treat all the mortgage interest you paid as a personal
that would have been deductible as a personal expense if you expense and figure the amount that would be deductible as an
had not used your home for business. These expenses include itemized deduction on Schedule A. See Pub. 936 for more
certain casualty losses, mortgage interest, and real estate taxes. information about figuring the home mortgage interest deduction
and the limits that may apply.
Taxpayers claiming the standard deduction. If you claim the Step 2. Include in column (b) of line 10 the amount of
standard deduction, you will not include any mortgage interest or deductible mortgage interest figured in Step 1 that is attributable
real estate taxes on lines 10 and 11; instead, you will claim the to the home in which you conducted the business.
entire business use of the home portion of those expenses using
lines 16 and 17. If you are not increasing your standard Because the limits on deducting mortgage interest as a
deduction by a net qualified disaster loss, then you will not personal expense are figured using all loans secured by your
include any casualty losses on line 9; instead, you will claim the home(s), do not claim mortgage interest in column (a) as a direct
entire business use of the home portion of your casualty losses expense, even if you use a separate structure in your home in
on line 29. If you are filing Schedule A to increase your standard connection with your trade or business.
deduction by a net qualified disaster loss, see Casualty losses The deduction for mortgage insurance premiums treated
reported on line 9, later. TIP as mortgage interest under section 163(h)(3)(E), and
You may prefer to itemize your deductions on formerly reported on line 10 as deductible mortgage
TIP Schedule A to claim amounts on lines 9, 10, and 11, interest expired on December 31, 2021.
even if your total personal deductions are less than the Mortgage interest reported on Schedule A. When you
standard deduction. figure your itemized deduction for mortgage interest on
Schedule A, include the following amounts of deductible
Casualty losses reported on line 9. Figure the amount to mortgage interest that you figured in Step 1 to the extent they
include in column (b) of line 9 as follows. are not deducted on another form, such as Schedule E as a
Step 1. Complete a worksheet version of Section A of Form rental expense.
4684 treating all your casualty losses (and gains) as personal • The amount of deductible mortgage interest you figured in
expenses. If you are itemizing your deductions, when completing Step 1 that is not attributable to the home in which you
line 17 of this worksheet version of Form 4684, enter 10% of conducted the business.
your adjusted gross income excluding the gross income and • The personal portion of deductible mortgage interest you
deductions attributable to the business use of the home. Do not included in column (b) of line 10. For example, if your business
file this worksheet version of Form 4684; instead, keep it for your percentage on line 7 is 30%, 70% of the amount you included in
records. You will complete a separate Form 4684 to attach to column (b) of line 10 is deductible as an itemized deduction on
your return using only the personal portion of your casualty Schedule A.
losses (and gains) for Section A. Excess mortgage interest. See the instructions for line 16,
Step 2. Include in column (b) of line 9 the loss amounts from later, to deduct the part of your mortgage interest from loans
lines 15 and 18 of this worksheet version of Form 4684 that are used to buy, build, or substantially improve the home in which
attributable to the home in which you conducted the business you conducted business that is not allowed on line 10 because
and are the result of a federally declared disaster. If you are of the limits on deducting home mortgage interest as a personal
claiming an increased standard deduction instead of itemizing expense.
your deductions, only use a net qualified disaster loss on line 15 Real estate taxes reported on line 11. If you are claiming the
of the worksheet version of Form 4684 for this Step 2. standard deduction, do not report an amount on line 11. If you
See the instructions for line 35, later, for the business use of itemize your deductions, figure the amount to include on line 11
the home casualty losses that you must include in Section B of as follows.
the separate Form 4684 you attach to your return. Step 1. If the total of your state and local income (or, if elected
Casualty losses reported on Schedule A. Use only the on your Schedule A, general sales) taxes, real estate taxes, and
personal portion of your casualty losses (and gains) when personal property taxes is not more than $10,000 ($5,000 if
completing Section A of the separate Form 4684 you attach to married filing separately), enter all the real estate taxes
your return. The separate Form 4684 you attach to your return is attributable to the home in which you conducted business in
used to figure the casualty losses you can include on line 15 of column (b) of line 11.
Schedule A and the net qualified disaster losses you can include Step 2. If you do not meet the condition of Step 1, use the
on line 16 of Schedule A. following worksheet to figure the amount to include in column (a)
Excess casualty losses. See the instructions for line 29, of line 11.
later, to deduct the part of your casualty losses for business use
of your home not allowed because of the limits on deducting

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Line 11 Worksheet Taxpayers itemizing deductions on Schedule A. If you
used the Line 11 Worksheet to figure the amount to include in
1. Enter your state and local income taxes (or, if you elect column (a) of line 11, then include the amount from line 10 of the
on Schedule A, your state and local general sales Line 11 Worksheet in column (a) of line 17; otherwise, do not
taxes) that are personal expenses . . . . . . . . . 1.
enter an amount on line 17.
2. Enter all the state and local real estate taxes you paid
on the home in which you conducted business . . 2.
3. Enter any other state and local real estates taxes you Line 19
paid that are a personal expense and not included in If you rent rather than own your home, include the rent you paid
line 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3. on line 19, column (b).
4. Enter your state and local personal property taxes that If your housing is provided free of charge and the value of the
are a personal expense . . . . . . . . . . . . . . . 4.
5. Add lines 1 through 4 . . . . . . . . . . . . . . . . 5. housing is tax exempt, you cannot deduct the rental value of any
portion of the housing.
6. Multiply line 2 by the percentage on Form 8829,
line 7 . . . . . . . . . . . . . . . . . . . . . . . . . 6.
Line 22
7. Subtract line 6 from line 5 . . . . . . . . . . . . . . 7.
Include on this line any 2022 operating expenses not included
8. Subtract line 7 from $10,000 ($5,000 if married filing on lines 9 through 21.
separately). If zero or less, enter -0- . . . . . . . . 8.
9. Real estate taxes reported on line 11. Enter the
smaller of line 6 or line 8 here and in column (a) of Line 25
Form 8829, line 11 . . . . . . . . . . . . . . . . . . 9. Enter any amount from your 2021 Form 8829, line 43.
10. Excess real estate taxes reported on line 17. If you did not file a 2021 Form 8829, then your carryover of
Subtract line 9 from line 6 . . . . . . . . . . . . . . 10.
prior year operating expenses is the amount of operating
expenses shown in Part IV of the last Form 8829, if any, that you
Real estate taxes reported on Schedule A. When you filed to claim a deduction for business use of the home.
figure your itemized deduction for state and local taxes on For example, if you filed a 2020 Form 8829 and you used the
Schedule A, only include the personal portion of your real estate simplified method for 2021 but are not using it for 2022, enter the
taxes on line 5b of Schedule A. amount from line 6a of your 2021 Simplified Method Worksheet
Excess real estate taxes. See the instructions for line 17, (or line 43 of your 2020 Form 8829).
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 29
because of the limitation on deducting state and local taxes as a Multiply the casualty losses attributable to the home in which you
personal expense. conducted business that are in excess of the amount reported
on line 9 (if any) by the business percentage of those losses and
Line 16 enter the result.
Taxpayers claiming the standard deduction. If you are
claiming the standard deduction, enter all the home mortgage Line 31
interest paid for loans used to buy, build, or substantially Enter any amount from your 2021 Form 8829, line 44.
improve the home in which you conducted business in column
(b) of line 16. Do not include mortgage interest on a loan that did If you did not file a 2021 Form 8829, then your carryover of
not benefit your home (for example, a home equity loan used to prior year excess casualty losses and depreciation is the amount
pay off credit card bills, to buy a car, or to pay tuition costs). of excess casualty losses and depreciation shown in Part IV of
the last Form 8829, if any, that you filed to claim a deduction for
Taxpayers itemizing deductions on Schedule A. If the business use of the home.
amount you figured in Step 1 under Mortgage interest reported
on line 10, earlier, was less than the full amount of interest you For example, if you filed a 2020 Form 8829 and you used the
paid because of the limits on deducting home mortgage interest simplified method for 2021 but are not using it for 2022, enter the
as a personal expense, include the excess attributable to the amount from line 6b of your 2021 Simplified Method Worksheet
loans used to buy, build, or substantially improve the home in (or line 44 of your 2020 Form 8829).
which you conducted business in column (b) of line 16.
Line 35
The deduction for mortgage insurance premiums treated Enter this amount on Form 4684, line 27, and enter "See Form
TIP as mortgage interest under section 163(h)(3)(E), and 8829" above line 27.
formerly reported on line 16 as deductible excess
mortgage interest expired on December 31, 2021. Line 36
Example. If you paid $15,000 of home mortgage interest on If your home was used in more than one business, allocate the
loans used to buy, build, or substantially improve the home in amount shown on line 36 to each business using any method
which you conducted business but would only be able to deduct that is reasonable under the circumstances. For each business,
$12,000 on Schedule A because of the limits that apply to enter on Schedule C, line 30, only the amount allocated to that
deducting home mortgage interest as a personal expense, business.
include $3,000 ($15,000 − $12,000 = $3,000) in column (b) of
line 16. Part III

Line 17 Lines 37 Through 40
Taxpayers claiming the standard deduction. If you are Enter on line 37 the cost or other basis of your home (including
claiming the standard deduction, enter all the real estate taxes land), or, if less, the fair market value of your home on the date
paid on the home in which you conducted business in column (b) you first used the home for business. Do not adjust this amount
of line 17. for depreciation claimed or changes in fair market value after the
year you first used your home for business.

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Enter on line 38 the cost or other basis of the land on which Line 42
your home sits, or, if less, the fair market value of the land on the If no additions and improvements were placed in service after
date you first used the home for business. Do not adjust this you began using your home for business, multiply line 40 by the
amount for changes in fair market value after the year you first percentage on line 41. Enter the result on lines 42 and 30.
used your home for business.
Attach your own statement showing the cost or other basis of IF additions and improvements THEN figure the depreciation
additions and improvements, used at least partially for business, 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 2022 (but after you began the percentage in the line 41
using your home for business) instructions for the month placed in
Line 41 service.
after May 12, 1993, and before 2022 2.564%.
IF you first used your home for THEN enter the following (except as noted below)
business in the following month in percentage on line 41...
2022... 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
that home before May 13, 1993
February 2.247%
after May 12, 1993, and you stopped the percentage given in Pub. 946 as
March 2.033% 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
Recovery Period Ends in that
May 1.605% 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
Pub. 534.
September 0.749%
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 2022, or
• You are depreciating additions and improvements placed in
IF you first used your home for THEN the percentage to enter on service in 2022.
business... line 41 is...
If you first used your home for business in 2022, enter the
after May 12, 1993, and before 2022 2.564%. amounts from Form 8829, lines 40 and 42, in columns (c) and
(except as noted below) (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 line 13.
that home before May 13, 1993
If you are depreciating additions and improvements placed in
after May 12, 1993, and you stopped the percentage given in service in 2022, enter in column (b) of line 19i on Form 4562 the
using your home for business before Pub. 946 as adjusted by the month and year the additions or improvements were placed in
the end of the year instructions under Sale or Other service. Enter the business basis of the additions or
Disposition Before the Recovery improvements in column (c) and the depreciation allowable on
Period Ends in that publication.
the additions or improvements in column (g). Do not include the
after 1986 and before May 13, 1993 the percentage given in amount entered in column (g) on Schedule C, line 13.
Pub. 946.
before 1987 the percentage given in Part IV
Pub. 534, Depreciating Property If your expenses are greater than the current year's limit, you can
Placed in Service Before 1987. carry over the excess to 2023. 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 2021. If you used the simplified Line 43
method for 2021, use the preceding table to find the percentage Figure the amount of operating expenses you can carry over to
to enter. 2023 by subtracting line 27 from line 26. If the result is zero or
Example. You first used your home for business in 2021 and less, you have no amount to carry over.
used the simplified method for that year. For 2022, you want to
use Form 8829 instead. Enter 2.564%. Line 44
Figure the amount of excess casualty losses and depreciation
you can carry over to 2023 by subtracting line 33 from line 32. If
the result is zero or less, you have no amount to carry over.

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Paperwork Reduction Act Notice. For the Paperwork 
Reduction Act Notice, see the Instructions for Form 1040.

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