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Accounting and Tax Center, Inc. P.O. Box 20683 Roanoke, Virginia 24018 (540) 77474002014 Tax OrganizerBusiness Use of Home Both Regular and Simplified Methods 1. Area used regularly and exclusively
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How to fill out business use of home

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How to fill out business use of home

01
Determine the area of your home that you will be using for business purposes.
02
Calculate the percentage of the total area of your home that is used for your business.
03
Keep a record of your home expenses that are related to your business, such as rent or mortgage payments, utilities, and insurance.
04
Determine the appropriate method to calculate your business use of home deduction. You can choose between the simplified option or the regular method.
05
If using the simplified option, multiply the square footage of your home office by the prescribed rate for the tax year.
06
If using the regular method, divide the square footage of your home office by the total square footage of your home to calculate the percentage of business use.
07
Allocate your home expenses based on the percentage of business use calculated in step 6.
08
Complete the appropriate sections of your tax return, such as Form 8829 for individuals or Schedule C for self-employed individuals.
09
Keep detailed records and receipts to support your business use of home deduction.
10
Consult with a tax professional or refer to the IRS guidelines for specific instructions and requirements.

Who needs business use of home?

01
Self-employed individuals who operate their business from their home office.
02
Small business owners who have a designated area of their home used exclusively for business purposes.
03
Freelancers or independent contractors who primarily work from home.
04
Professionals who offer services remotely, such as consultants, writers, or graphic designers.
05
Individuals who conduct administrative or managerial tasks for their business from a home office.
06
Entrepreneurs who use their home as a base for managing their business operations.
07
Taxpayers who meet the IRS requirements for claiming the business use of home deduction.
08
Individuals who have a legitimate need to use their home for business purposes and can meet the necessary criteria.

What is Business Use of Home Both Regular and Simplified Methods Form?

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Instructions for the form Business Use of Home Both Regular and Simplified Methods

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Business use of home refers to using a portion of your home for business purposes, such as a home office.
Individuals who operate a business out of their home and meet the IRS guidelines for eligibility are required to file business use of home.
You can fill out Form 8829: Expenses for Business Use of Your Home to report your business use of home expenses.
The purpose of business use of home is to calculate the deductible expenses associated with using a portion of your home for business purposes.
You must report relevant expenses such as home office expenses, mortgage interest, property taxes, utilities, and repairs.
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