Form 8829 - Business Use of Home
If you are self-employed and work from home, you can claim a portion of your home costs using form 8829.
The form will show the amount you can claim on Schedule C (see our guide to Schedule C) and any unused amounts can be carried over to the next tax year.
CAN YOU CLAIM YOUR HOME AS YOUR OFFICE?
You can claim your home as your office, which will qualify as your principal place of business, if you meet the following requirements:
You use it exclusively and regularly for administrative or management activities of your trade or business.
You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
STORAGE OF INVENTORY AND SAMPLES
Any space you use to store inventory and samples in your home can be treated as business use and you can claim expenses for that part of your home.
Expenses You Can Claim For Your Home
Mortgage Interest
Real estate taxes
Rent
Insurance
Repairs and Maintenance
Electricity, Gas, and Water
Carryover of Expenses
If your expenses are greater than the current year's limit, you can carry over the excess to 2020.
The carryover will be subject to the deduction limit for that year.
When to File
While you are living outside the United States as an expat, the filing deadline for the US tax return is June 15 each year (extended to July 15 for 2020).
Form 8829 is filed with your main federal tax return with the IRS.
Next Steps
f you do need to file Form 8829, or you have any questions about if you can claim business use of home, or how to claim the use of home tax allowance, feel free to contact one of our U.S. expat accountants and tax preparers here.
