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When self-employed, there are many remote working-related business expenses that you can claim, including a proportion of: Gas, electricity and water bills. Internet and telephone bills. Rent and mortgage interest costs.
The Tax Cuts and Jobs Act of 2017, however, banned such workers from taking the deduction from 2018 to 2025. To claim the home-office deduction in 2021, taxpayers must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business.
The home office deduction Form 8829 is available to both homeowners and renters. There are certain expenses taxpayers can deduct. They include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
For costs such as electricity and gas the total cost should be apportioned by room. Therefore if your house has five rooms of approximately equal size, and one of them is used as a home office, then 20% of your heating and lighting costs can be claimed for business usage.
Overview: What is IRS Form 8829? Self-employed people with dedicated home offices can fill out Form 8829 to claim a tax deduction for the business use of their home. The deduction amount depends on the method you use.
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Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction: The simplified option has a rate of $5 a square foot for business use of the home. The maximum size for this option is 300 square feet. The maximum deduction under this method is $1,500.
The home office deduction Form 8829 is available to both homeowners and renters. There are certain expenses taxpayers can deduct. They include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
Purpose of Form Use Form 8829 to figure the allowable expenses for business use of your home on Schedule C (Form 1040) and any carryover to 2022 of amounts not deductible in 2021. You must meet specific requirements to deduct expenses for the business use of your home.
To deduct business-use-of-home expenses, you have to either be: Using your home as your principal place of business; or. Using the space only to earn business income and using it on a regular and ongoing basis to meet your clients, customers or patients.
Purpose of Form Use Form 8829 to figure the allowable expenses for business use of your home on Schedule C (Form 1040) and any carryover to 2022 of amounts not deductible in 2021. You must meet specific requirements to deduct expenses for the business use of your home.

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