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Department of the Treasury
Internal Revenue Service
2021

Instructions for Form 8829

Expenses for Business Use of Your Home

Section references are to the Internal Revenue Code unless • In connection with your trade or business if it is a separate
otherwise noted. structure that is not attached to your home.
As explained later, exceptions to the exclusivity requirement
Future Developments apply to space used on a regular basis for:
For the latest information about developments related to Form • Storage of inventory or product samples, and
8829 and its instructions, such as legislation enacted after they • Certain daycare facilities.
were published, go to IRS.gov/Form8829.
Principal Place of Business
Reminder In determining whether the office in your home qualifies as your
principal place of business, you must consider the following two
Simplified method used for 2020. If you used the simplified items.
method for 2020 but are not using it for 2021, you may have • The relative importance of the activities performed at each
unallowed expenses from a prior year Form 8829 that you can place where you conduct business.
carry over to your 2021 Form 8829. See the instructions for lines • The amount of time spent at each place where you conduct
25 and 31. business.
Your home office will qualify as your principal place of
General Instructions business if you meet the following requirements.
• You use it exclusively and regularly for administrative or
Purpose of Form management activities of your trade or business.
Use Form 8829 to figure the allowable expenses for business • You have no other fixed location where you conduct
use of your home on Schedule C (Form 1040) and any carryover substantial administrative or management activities of your trade
to 2022 of amounts not deductible in 2021. or business.
You must meet specific requirements to deduct expenses for Administrative or management activities. There are many
the business use of your home. Even if you meet these activities that are administrative or managerial in nature. The
requirements, your deductible expenses may be limited. Part IV following are a few examples.
is used to figure any allowable carryover of expenses that are • Billing customers, clients, or patients.
more than the limit. For details, see Pub. 587, Business Use of • Keeping books and records.
Your Home. • Ordering supplies.
• Setting up appointments.
Who cannot use Form 8829. Do not use Form 8829 in the • Forwarding orders or writing reports.
following situations.
• You are claiming expenses for business use of your home as Administrative or management activities performed at oth-
a partner or you are claiming these expenses on Schedule F er locations. The following activities performed by you or
(Form 1040). Instead, complete the Worksheet To Figure the others will not disqualify your home office from being your
Deduction for Business Use of Your Home in Pub. 587. (You principal place of business.
cannot claim expenses for business use of your home as an • You have others conduct your administrative or management
employee.) activities at locations other than your home. For example,
• All of the expenses for business use of your home are another company does your billing from its place of business.
properly allocable to inventory costs. Instead, figure these • You conduct administrative or management activities at
expenses in Schedule C, Part III. places that are not fixed locations of your business, such as in a
• You have elected to use the simplified method for this home car or a hotel room.
for 2021. If you had more than one home during the year that • You occasionally conduct minimal administrative or
you used for business, you can use the simplified method for management activities at a fixed location outside your home.
only one home. Use Form 8829 to claim expenses for business • You conduct substantial nonadministrative or
use of the other home. For more information about the simplified nonmanagement business activities at a fixed location outside
method, see the Instructions for Schedule C and Pub. 587. your home. For example, you meet with or provide services to
customers, clients, or patients at a fixed location of the business
Who Can Deduct Expenses for outside your home.
• You have suitable space to conduct administrative or
Business Use of a Home management activities outside your home, but choose to use
Generally, you can deduct business expenses that apply to a your home office for those activities instead.
part of your home only if that part is exclusively used on a regular More information. For information on other ways to qualify to
basis: deduct business use of the home expenses, see Pub. 587.
• As your principal place of business for any of your trades or
businesses; Storage of Inventory or Product Samples
• As a place of business used by your patients, clients, or
customers to meet or deal with you in the normal course of your You can also deduct expenses that apply to space within your
trade or business; or home used on a regular basis to store inventory or product
samples from your trade or business of selling products at retail

Dec 16, 2021 Cat. No. 15683B

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or wholesale. Your home must be the only fixed location of your Instead, multiply 24 hours by the number of days available and
trade or business. enter the result.

Daycare Facilities Part II
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 Line 8
business expenses even though you use the same space for If all the gross income from your trade or business is from the
nonbusiness purposes. To qualify for this exception, you must business use of your home, enter on line 8 the amount from
have applied for (and not have been rejected), been granted Schedule(s) C, line 29, plus any gain derived from the business
(and still have in effect), or be exempt from having a license, use of your home and shown on Form 8949 (and included on
certification, registration, or approval as a daycare center or as a Schedule D (Form 1040)) or Form 4797, minus any loss shown
family or group daycare home under state law. on Form 8949 (and included in Schedule D) or Form 4797 that is
allocable to the trade or business in which you use your home
Expenses Related to Tax-Exempt Income but is not allocable to the use of the home. If you file more than
Generally, you cannot deduct expenses that are allocable to one Form 8829, include only the income earned and the
tax-exempt income. However, if you receive a tax-exempt deductions attributable to that income during the period you
parsonage allowance or a tax-exempt military housing owned the home for which Part I was completed.
allowance, your expenses for mortgage interest, mortgage If some of the income is from a place of business other than
insurance premiums, and real property taxes are deductible your home, you must first determine the part of your gross
under the normal rules. No deduction is allowed for other income (Schedule C, line 7, and gains from Form 8949,
expenses allocable to the tax-exempt allowance. Schedule D, and Form 4797) from the business use of your
home. In making this determination, consider the amount of time
you spend at each location as well as other facts. After
Specific Instructions determining the part of your gross income from the business use
of your home, subtract from that amount the total expenses
Part I shown on Schedule C, line 28, plus any losses shown on Form
8949 (and included in Schedule D) or Form 4797 that are
Lines 1 and 2 allocable to the trade or business in which you use your home
To determine the area on lines 1 and 2, you can use square feet but that are not allocable to the use of the home. Enter the result
or any other reasonable method if it accurately figures your on Form 8829, line 8.
business percentage on line 7.
Do not include on line 1 the area of your home you used to Columns (a) and (b)
figure any expenses allocable to inventory costs. The business Enter as direct or indirect expenses only expenses for the
percentage of these expenses should have been taken into business use of your home (that is, expenses allowable only
account in Schedule C, Part III. because your home is used for business). If you did not operate
a business for the entire year, you can deduct only the expenses
Special Computation for Certain Daycare Facilities paid or incurred for the portion of the year you used your home
for business. Other expenses not allocable to the business use
If the part of your home used as a daycare facility includes areas of your home, such as salaries, supplies, and advertising, are
used exclusively for business as well as other areas used only deductible elsewhere on Schedule C and should not be entered
partly for business, you cannot figure your business percentage on Form 8829.
using Part I. Instead, follow these three steps.
Direct expenses benefit only the business part of your home.
1. Figure the business percentage of the part of your home They include painting or repairs made to the specific area or
used exclusively for business by dividing the area used rooms used for business. Enter 100% of your direct expenses on
exclusively for business by the total area of the home. the appropriate line in column (a).
2. Figure the business percentage of the part of your home Indirect expenses are for keeping up and running your entire
used only partly for business by following the same method used home. They benefit both the business and personal parts of your
in Part I of the form, but enter on line 1 of your computation only home. Generally, enter 100% of your indirect expenses on the
the area of the home used partly for business. appropriate line in column (b).
3. Add the business percentages you figured in the first two Exception. If the business percentage of an indirect expense
steps and enter the result on line 7. Attach a statement with your is different from the percentage on line 7, enter only the business
computation and enter “See attached computation” directly part of the expense on the appropriate line in column (a), and
above the percentage you entered on line 7. leave that line in column (b) blank. For example, your electric bill
is $800 for lighting, cooking, laundry, and television. If you
Line 4 reasonably estimate $300 of your electric bill is for lighting and
Enter the total number of hours the facility was used for daycare you use 10% of your home for business, enter $30 on line 21 in
during the year. column (a). Do not make an entry on line 21 in column (b) for any
Example. Your home is used Monday through Friday for 12 part of your electric bill.
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 Lines 9, 10, and 11
(3,000 hours for weekdays plus 400 hours for Saturdays). Use lines 9, 10, and 11 for business use of the home expenses
that would have been deductible as a personal expense if you
Line 5 had not used your home for business. These expenses include
If you started or stopped using your home for daycare in 2021, certain casualty losses, mortgage interest, mortgage insurance
you must prorate the number of hours based on the number of premiums, and real estate taxes.
days the home was available for daycare. Do not enter 8,760. Taxpayers claiming the standard deduction. If you claim the
standard deduction, you will not include any mortgage interest,

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mortgage insurance premiums, or real estate taxes on lines 10 Mortgage interest reported on Schedule A. When you
and 11; instead, you will claim the entire business use of the figure your itemized deduction for mortgage interest on
home portion of those expenses using lines 16 and 17. If you are Schedule A, include the following amounts of deductible
not increasing your standard deduction by a net qualified mortgage interest that you figured in Step 1 to the extent they
disaster loss, then you will not include any casualty losses on are not deducted on another form, such as Schedule E as a
line 9; instead, you will claim the entire business use of the home rental expense.
portion of your casualty losses on line 29. If you are filing • The amount of deductible mortgage interest you figured in
Schedule A to increase your standard deduction by a net Step 1 that is not attributable to the home in which you
qualified disaster loss, see Casualty losses reported on line 9, conducted the business.
later. • The personal portion of deductible mortgage interest you
included in column (b) of line 10. For example, if your business
You may prefer to itemize your deductions on
percentage on line 7 is 30%, 70% of the amount you included in
TIP Schedule A to claim amounts on lines 9, 10, and 11,
column (b) of line 10 is deductible as an itemized deduction on
even if your total personal deductions are less than the
Schedule A.
standard deduction.
Excess mortgage interest. See the instructions for line 16,
Casualty losses reported on line 9. Figure the amount to later, to deduct the part of your mortgage interest from loans
include in column (b) of line 9 as follows. used to buy, build, or substantially improve the home in which
you conducted business that is not allowed on line 10 because
Step 1. Complete a worksheet version of Section A of Form of the limits on deducting home mortgage interest as a personal
4684 treating all your casualty losses (and gains) as personal expense.
expenses. If you are itemizing your deductions, when completing
line 17 of this worksheet version of Form 4684, enter 10% of Mortgage insurance premiums reported on line 10. If you
your adjusted gross income excluding the gross income and are claiming the standard deduction, do not report any mortgage
deductions attributable to the business use of the home. Do not insurance premiums on line 10. If you itemize your deductions,
file this worksheet version of Form 4684; instead, keep it for your figure the amount to include in column (b) of line 10 as follows.
records. You will complete a separate Form 4684 to attach to Step 1. Treat all the mortgage insurance premiums you paid
your return using only the personal portion of your casualty under a mortgage insurance contract issued after December 31,
losses (and gains) for Section A. 2006, in connection with home acquisition debt that was secured
Step 2. Include in column (b) of line 9 the loss amounts from by your first or second home as a personal expense and
lines 15 and 18 of this worksheet version of Form 4684 that are complete a separate Mortgage Insurance Premiums Deduction
attributable to the home in which you conducted the business Worksheet in the Instructions for Schedule A for Form 8829.
and are the result of a federally declared disaster. If you are When completing line 2 of this worksheet for Form 8829, enter
claiming an increased standard deduction instead of itemizing your adjusted gross income excluding the gross income and
your deductions, only use a net qualified disaster loss on line 15 deductions attributable to the business use of the home. Do not
of the worksheet version of Form 4684 for this Step 2. use this worksheet to figure the amount to enter on line 8d of
See the instructions for line 35, later, for the business use of Schedule A.
the home casualty losses that you must include in Section B of Step 2. Include in column (b) of line 10 the amount of
the separate Form 4684 you attach to your return. deductible mortgage insurance premiums figured in Step 1 that
Casualty losses reported on Schedule A. Use only the are attributable to the home in which you conducted the
personal portion of your casualty losses (and gains) when business.
completing Section A of the separate Form 4684 you attach to Mortgage insurance premiums reported on Schedule A.
your return. The separate Form 4684 you attach to your return is When you figure your itemized deduction for mortgage
used to figure the casualty losses you can include on line 15 of insurance premiums on Schedule A, use only the personal
Schedule A and the net qualified disaster losses you can include portion of your mortgage insurance premiums when completing
on line 16 of Schedule A. the Mortgage Insurance Premiums Deduction Worksheet for
Excess casualty losses. See the instructions for line 29, line 8d of Schedule A. The personal portion of your mortgage
later, to deduct the part of your casualty losses for business use insurance premiums for Schedule A include the following
of your home not allowed because of the limits on deducting amounts to the extent they are not deducted on another form,
casualty losses as a personal expense, including any losses that such as Schedule E as a rental expense.
are not the result of a federally declared disaster. • The mortgage insurance premiums that are not attributable to
the home in which you conducted the business.
Mortgage interest reported on line 10. If you are claiming the • The personal portion of the mortgage insurance premiums
standard deduction, do not report an amount on line 10. If you attributable to the home in which you conducted the business.
itemize your deductions, figure the amount to include in column For example, if your business percentage on line 7 is 30%, 70%
(b) of line 10 as follows. of the mortgage insurance premiums attributable to the home in
Step 1. Treat all the mortgage interest you paid as a personal which you conducted the business are included on line 1 of the
expense and figure the amount that would be deductible as an Mortgage Insurance Premiums Deduction Worksheet you
itemized deduction on Schedule A. See Pub. 936 for more complete for Schedule A.
information about figuring the home mortgage interest deduction Excess mortgage insurance premiums. See the
and the limits that may apply. instructions for line 16, later, to deduct the part of your mortgage
Step 2. Include in column (b) of line 10 the amount of insurance premiums from loans used to buy, build, or
deductible mortgage interest figured in Step 1 that is attributable substantially improve the home in which you conducted
to the home in which you conducted the business. business that are not allowed on line 10 because of the limit on
deducting mortgage insurance premiums as a personal
Because the limits on deducting mortgage interest as a
expense.
personal expense are figured using all loans secured by your
home(s), do not claim mortgage interest in column (a) as a direct Real estate taxes reported on line 11. If you are claiming the
expense, even if you use a separate structure in your home in standard deduction, do not report an amount on line 11. If you
connection with your trade or business. itemize your deductions, figure the amount to include on line 11
as follows.

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Step 1. If the total of your state and local income (or, if elected $12,000 on Schedule A because of the limits that apply to
on your Schedule A, general sales) taxes, real estate taxes, and deducting home mortgage interest as a personal expense,
personal property taxes is not more than $10,000 ($5,000 if include $3,000 ($15,000 − $12,000 = $3,000) in column (b) of
married filing separately), enter all the real estate taxes line 16.
attributable to the home in which you conducted business in Example 2. If you paid $3,000 of mortgage insurance
column (b) of line 11. premiums on loans used to buy, build, or substantially improve
Step 2. If you do not meet the condition of Step 1, use the the home in which you conducted business but the Mortgage
following worksheet to figure the amount to include in column (a) Insurance Premiums Deduction Worksheet you completed for
of line 11. Form 8829 limits the amount of mortgage insurance premiums
you can include in column (b) of line 10 to $1,000, include
Line 11 Worksheet $2,000 ($3,000 − $1,000) in column (b) of line 16.

1. Enter your state and local income taxes (or, if you elect Line 17
on Schedule A, your state and local general sales Taxpayers claiming the standard deduction. If you are
taxes) that are personal expenses . . . . . . . . . 1.
claiming the standard deduction, enter all the real estate taxes
2. Enter all the state and local real estate taxes you paid paid on the home in which you conducted business in column (b)
on the home in which you conducted business . . 2.
of line 17.
3. Enter any other state and local real estates taxes you
paid that are a personal expense and not included in Taxpayers itemizing deductions on Schedule A. If you
line 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3. used the Line 11 Worksheet to figure the amount to include in
4. Enter your state and local personal property taxes that column (a) of line 11, then include the amount from line 10 of the
are a personal expense . . . . . . . . . . . . . . . 4. Line 11 Worksheet in column (a) of line 17; otherwise, do not
5. Add lines 1 through 4 . . . . . . . . . . . . . . . . 5. enter an amount on line 17.
6. Multiply line 2 by the percentage on Form 8829,
line 7 . . . . . . . . . . . . . . . . . . . . . . . . . 6. Line 19
7. Subtract line 6 from line 5 . . . . . . . . . . . . . . 7. If you rent rather than own your home, include the rent you paid
8. Subtract line 7 from $10,000 ($5,000 if married filing on line 19, column (b).
separately). If zero or less, enter -0- . . . . . . . . 8.
9. Real estate taxes reported on line 11. Enter the If your housing is provided free of charge and the value of the
smaller of line 6 or line 8 here and in column (a) of housing is tax exempt, you cannot deduct the rental value of any
Form 8829, line 11 . . . . . . . . . . . . . . . . . . 9. portion of the housing.
10. Excess real estate taxes reported on line 17.
Subtract line 9 from line 6 . . . . . . . . . . . . . . 10. Line 22
Include on this line any 2021 operating expenses not included
Real estate taxes reported on Schedule A. When you on lines 9 through 21.
figure your itemized deduction for state and local taxes on
Schedule A, only include the personal portion of your real estate Line 25
taxes on line 5b of Schedule A. Enter any amount from your 2020 Form 8829, line 43.
Excess real estate taxes. See the instructions for line 17,
later, to deduct the part of your real estate taxes for the home in If you did not file a 2020 Form 8829, then your carryover of
which you conducted business that is not allowed on line 11 prior year operating expenses is the amount of operating
because of the limitation on deducting state and local taxes as a expenses shown in Part IV of the last Form 8829, if any, that you
personal expense. filed to claim a deduction for business use of the home.
For example, if you filed a 2019 Form 8829 and you used the
Line 16 simplified method for 2020 but are not using it for 2021, enter the
Taxpayers claiming the standard deduction. If you are amount from line 6a of your 2020 Simplified Method Worksheet
claiming the standard deduction, enter all the home mortgage (or line 43 of your 2019 Form 8829).
interest and mortgage insurance premiums paid for loans used
to buy, build, or substantially improve the home in which you Line 29
conducted business in column (b) of line 16. Do not include Multiply the casualty losses attributable to the home in which you
mortgage interest or mortgage insurance premiums on a loan conducted business that are in excess of the amount reported
that did not benefit your home (for example, a home equity loan on line 9 (if any) by the business percentage of those losses and
used to pay off credit card bills, to buy a car, or to pay tuition enter the result.
costs).
Taxpayers itemizing deductions on Schedule A. If the Line 31
amount you figured in Step 1 under Mortgage interest reported Enter any amount from your 2020 Form 8829, line 44.
on line 10 or Step 1 under Mortgage insurance premiums
reported on line 10, earlier, was less than the full amount of If you did not file a 2020 Form 8829, then your carryover of
interest or insurance premiums you paid because of the limits on prior year excess casualty losses and depreciation is the amount
deducting home mortgage interest or mortgage insurance of excess casualty losses and depreciation shown in Part IV of
premiums as a personal expense, include the excess the last Form 8829, if any, that you filed to claim a deduction for
attributable to the loans used to buy, build, or substantially business use of the home.
improve the home in which you conducted business in column
(b) of line 16. For example, if you filed a 2019 Form 8829 and you used the
Example 1. If you paid $15,000 of home mortgage interest on simplified method for 2020 but are not using it for 2021, enter the
loans used to buy, build, or substantially improve the home in amount from line 6b of your 2020 Simplified Method Worksheet
which you conducted business but would only be able to deduct (or line 44 of your 2019 Form 8829).

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Line 35 IF you first used your home for THEN the percentage to enter on
Enter this amount on Form 4684, line 27, and enter "See Form business... line 41 is...
8829" above line 27. after May 12, 1993, and before 2021 2.564%.*
(except as noted below)
Line 36
after May 12, 1993, and before 1994, the percentage given in
If your home was used in more than one business, allocate the and you either started construction or Pub. 946.
amount shown on line 36 to each business using any method had a binding contract to buy or build
that is reasonable under the circumstances. For each business, that home before May 13, 1993
enter on Schedule C, line 30, only the amount allocated to that after May 12, 1993, and you stopped the percentage given in
business. using your home for business before Pub. 946 as adjusted by the
the end of the year instructions under Sale or Other
Part III Disposition Before the Recovery
Period Ends in that publication.
Lines 37 Through 40 after 1986 and before May 13, 1993 the percentage given in
Enter on line 37 the cost or other basis of your home (including Pub. 946.
land), or, if less, the fair market value of your home on the date before 1987 the percentage given in
you first used the home for business. Do not adjust this amount Pub. 534, Depreciating Property
for depreciation claimed or changes in fair market value after the Placed in Service Before 1987.
year you first used your home for business.
* Exception. If the business part of your home was Indian reservation
Enter on line 38 the cost or other basis of the land on which property that met the requirements of section 168(j) when placed in service,
your home sits, or, if less, the fair market value of the land on the see Pub. 946 to figure the depreciation.
date you first used the home for business. Do not adjust this
amount for changes in fair market value after the year you first
used your home for business.
Attach your own statement showing the cost or other basis of Simplified method used for 2020. If you used the simplified
additions and improvements, used at least partially for business, method for 2020, use the preceding table to find the percentage
that were placed in service after you began to use your home for to enter.
business. Do not include any amounts on lines 37 through 40 for Example. You first used your home for business in 2020 and
these expenditures. Instead, see the instructions for line 42. used the simplified method for that year. For 2021, you want to
use Form 8829 instead. Enter 2.564%.
Line 41
Line 42
IF you first used your home for THEN enter the following If no additions and improvements were placed in service after
business in the following month in percentage on line 41*... you began using your home for business, multiply line 40 by the
2021... percentage on line 41. Enter the result on lines 42 and 30.
January 2.461%
February 2.247% IF additions and improvements THEN figure the depreciation
were placed in service... allowed on these expenditures by
March 2.033% multiplying the business part of
April 1.819% their cost or other basis by...
May 1.605% during 2021 (but after you began the percentage in the line 41
using your home for business) instructions for the month placed in
June 1.391% service.
July 1.177% after May 12, 1993, and before 2021 2.564%.*
August 0.963% (except as noted below)
September 0.749% after May 12, 1993, and before 1994, the percentage given in
and you either started construction or Pub. 946.
October 0.535% had a binding contract to buy or build
November 0.321% that home before May 13, 1993
December 0.107% 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
* Exception. If the business part of your home is Indian reservation property the end of the year Sale or Other Disposition Before the
that meets the requirements of section 168(j), see Pub. 946 to figure the Recovery Period Ends in that
depreciation. publication.
after 1986 and before May 13, 1993 the percentage given in
Pub. 946.
before 1987 the percentage given in
Pub. 534.
* Exception. If the business part of your home was Indian reservation
property that met the requirements of section 168(j) when placed in service,
see Pub. 946 to figure the depreciation.

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Attach a statement showing your computation and include the
amount you figured in the total for line 42. Enter “See attached” Part IV
below the entry space. If your expenses are greater than the current year's limit, you can
carry over the excess to 2022. The carryover will be subject to
Complete and attach Form 4562, Depreciation and the deduction limit for that year, whether or not you live in the
Amortization, only if: same home during that year.
• You first used your home for business in 2021, or
• You are depreciating additions and improvements placed in Line 43
service in 2021.
Figure the amount of operating expenses you can carry over to
If you first used your home for business in 2021, enter the 2022 by subtracting line 27 from line 26. If the result is zero or
amounts from Form 8829, lines 40 and 42, in columns (c) and less, you have no amount to carry over.
(g) of line 19i on Form 4562. In column (b) of line 19i, enter the
month and year you first used your home for business. Do not Line 44
include the amount from Form 8829, line 42, on Schedule C,
line 13. Figure the amount of excess casualty losses and depreciation
you can carry over to 2022 by subtracting line 33 from line 32. If
If you are depreciating additions and improvements placed in the result is zero or less, you have no amount to carry over.
service in 2021, enter in column (b) of line 19i on Form 4562 the
month and year the additions or improvements were placed in Paperwork Reduction Act Notice. For the Paperwork
service. Enter the business basis of the additions or Reduction Act Notice, see the Instructions for Form 1040.
improvements in column (c) and the depreciation allowable on
the additions or improvements in column (g). Do not include the
amount entered in column (g) on Schedule C, line 13.

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