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Use Form 8829 to figure the allowable expenses for business use of your home on Schedule C (Form 1040) and any carryover to next year of amounts not deductible this year.
Regularly and Exclusively The inventory youre storing is what you sell as part of your business. You keep the inventory or product samples that you sell in your home. Your home (where you store the products) is the only fixed location of your business. You use the storage space on a regular basis for business.
Simplified method: With the simplified option, you arent deducting actual expenses. Instead, the square footage of your space is multiplied by a prescribed rate. The rate is $5 per square foot for up to 300 square feet of space.
Filling Out the 8829 Form Line 1: First, enter the square footage of your home office that you use exclusively for business purposes. Line 2: Then enter your homes total square footage. Line 3: Divide Line 1 by Line 2 and multiply by 100 to find the percentage of your home that you consider to be your home office.
Direct expenses benefit only the business part of your home. They include painting or repairs made to the specific area or rooms used for business. Enter 100% of your direct expenses on the appropriate line in column (a). Indirect expenses are for keeping up and running your entire home.
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The simplified method allows a standard deduction of $5 per square foot of home used for business, with a maximum of 300 square feet. Allowable home-related itemized deductions, such as mortgage interest and real estate taxes, are claimed in full on Schedule A.
An easier calculation is acceptable if the rooms in your home are all about the same size. In that case, you can figure out the business percentage by dividing the number of rooms used in your business by the total number of rooms in the house.

form 8829 2021