Home Office Deduction Worksheet (Form 8829)
Self-employed home-office deduction worksheet — supports Form 8829 with both regular and simplified methods.
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HOME OFFICE DEDUCTION WORKSHEET (FORM 8829)
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Taxpayer: Jordan Alex Taylor
Tax year: 2026
Business: JT Consulting (Schedule C)
Address: 482 Elm Street, Apt 3B, Portland, OR 97214
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QUALIFICATION TEST (IRC §280A)
The home office must be used:
(a) REGULARLY (consistent, ongoing use for business), AND
(b) EXCLUSIVELY (no personal use of the same space), AND
(c) For one of:
• The principal place of business, OR
• A place to meet customers / clients / patients, OR
• A separate structure used in connection with the trade or business.
Self-certify:
□ Office is used regularly for business
□ Office is used EXCLUSIVELY for business (no guest bed, no personal computer use)
□ Office qualifies under at least one of the four §280A tests
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BUSINESS-USE PERCENTAGE
Office sq ft: 180
Total home sq ft: 1,450
Square-footage ratio: 12.41%
Months used for business: 12 of 12
Time ratio: 100.00%
COMBINED BUSINESS-USE %: 12.41%
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METHOD ELECTED: Regular method (actual expenses × business use %)
───── REGULAR METHOD (actual expenses × business %) ─────
INDIRECT EXPENSES (whole-home costs allocated by business %)
Mortgage interest: $9,200.00
Real estate taxes: $4,400.00
Rent (if renter): $0.00
Home insurance: $1,280.00
Utilities (electric, gas, water): $2,400.00
Repairs & maintenance: $600.00
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Subtotal (indirect): $17,880.00
× Business-use %: 12.41%
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Indirect business deduction: $2,219.59
DIRECT EXPENSES (100% business — already business-use)
Internet (business portion): $720.00
Depreciation (business portion): $1,850.00
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$2,570.00
REGULAR-METHOD TOTAL: $4,789.59
───── SIMPLIFIED METHOD ─────
Office sq ft (cap at 300): 180
× $5/sq ft × (months / 12): $900.00
SIMPLIFIED-METHOD TOTAL: $900.00
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DEDUCTION BEFORE INCOME LIMIT: $4,789.59
INCOME LIMIT (IRC §280A(c)(5))
The home-office deduction cannot exceed the gross income from the business
use of the home, less other Schedule C expenses unrelated to the home.
Schedule C net income (pre-home office): $78,000.00
Maximum deductible this year: $78,000.00
ALLOWED DEDUCTION (lesser of above): $4,789.59
Full deduction is allowed; no carryover this year.
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REPORTING
Schedule C filers: Form 8829 (regular method) or Schedule C line 30 (simplified)
Partnership / S-corp: Reimburse via accountable plan; do NOT use Form 8829
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DOCUMENTATION TO RETAIN
□ Floor-plan or measurement showing office sq ft and total home sq ft
□ Photos of office (showing exclusive business use)
□ Mortgage Form 1098 / property tax bills
□ Utility bills for the year
□ Insurance declarations page
□ Repair / maintenance receipts
□ Depreciation worksheet (carry forward year-over-year)
Worksheet compiled: May 4, 2026
About this template
The home office deduction is one of the most-feared and most-mythologised deductions in the U.S. tax code. The myth is that claiming it triggers an audit; the reality is that the deduction is widely claimed without consequence by taxpayers who satisfy IRC §280A's requirements. The two requirements that disqualify most casual users are (1) regular use (consistent, ongoing) and (2) EXCLUSIVE use (no personal use of the same space whatsoever). A spare bedroom that doubles as a guest room fails the exclusive-use test; a corner of the living room used in the evenings for a side business fails it too. A dedicated room or clearly delineated area used solely for business qualifies. After TCJA, only self-employed filers (Schedule C, partners, S-corp owners via accountable plans) can claim this deduction — W-2 employees lost it through 2025. Two methods exist: the regular method (Form 8829, calculate actual home expenses × business-use percentage) and the simplified method ($5/sq ft, capped at 300 sq ft = $1,500/year, no Form 8829 required). The regular method usually wins for high-cost homes (high mortgage interest, high property taxes, larger offices), but it carries the depreciation recapture penalty when you sell your home — depreciation taken on the home-office portion of the home reduces basis and is taxed at up to 25% as unrecaptured §1250 gain. The simplified method has no depreciation, so no recapture — making it attractive even when the dollar amount is lower. Choose the method each year; you can switch.
When to use it
- Self-employed filers with a dedicated home workspace.
- Comparing regular vs simplified methods for the year.
- Documenting business-use percentage for an audit defence.
- Partners or S-corp owners reimbursing through an accountable plan.
- Tracking carryover under the regular method when business income limits the deduction.
What to include
- Square-footage calculation (office / total home).
- Months used for business.
- Each indirect-expense category (mortgage, taxes, utilities, insurance).
- Direct expenses (100% business — internet, depreciation).
- Business-income limitation calculation.
- Method elected and the alternate method total for comparison.