Why it matters
The form documents the regular and exclusive use test and the expense calculation. A deduction claimed without the form and the supporting records is harder to defend if the return is examined.
Example
A sole proprietor uses a spare room only for business. The preparer completes Form 8829 with the square footage, the business percentage and the qualifying expenses, then carries the deduction to Schedule C.
Related terms
Questions about Form 8829
Can an employee use Form 8829?
Form 8829 is for a self-employed taxpayer. The deduction for unreimbursed employee expenses is generally suspended for federal purposes, so an employee usually cannot claim it.
What expenses go on Form 8829?
Qualifying indirect expenses such as rent, utilities, insurance and repairs, plus depreciation, applied at the business percentage. Direct expenses for the office area may be fully deductible.