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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.
You can only take depreciation expense linked to the home office portion of your home, so you need to know exactly how big that space is. To calculate the business percentage, divide the area of your home office (in square feet) by the total area of your home (in square feet). The result is your business percentage.
The home office deduction, calculated on Form 8829, is available to both homeowners and renters. There are certain expenses taxpayers can deduct. These may include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
Using IRS Form 8829 Part I of Form 8829: You calculate the part of your home used for business. Part II: You list your total business income along with your deductible expenses. Part III: This part is where you calculate the depreciation of the business portion of your home.
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