Is form 8829 always necessary?

[tacks]

I found that a prior year preparer did a 2106-EZ (the total of which included 8829 expense) but he did not file the 8829 form. If an 8829 form is not required well then, heck, i'd just prefer not to send it.

I know that i can use the 2106-EZ instead of the longer form. But do i necessarily need an 8829 to deduct 'Business use of Home?'

(this client is an employee who works from home -- her out of state employer provides no office.)

[travis bickle]

I have no idea why the 8829 was not filed

I found that a prior year preparer did a 2106-EZ (the total of which included 8829 expense) but he did not file the 8829 form. If an 8829 form is not required well then, heck, i'd just prefer not to send it.

I know that i can use the 2106-EZ instead of the longer form. But do i necessarily need an 8829 to deduct 'Business use of Home?'

(this client is an employee who works from home -- her out of state employer provides no office.)

but -- off the top of my head without doing any research -- I think it is always necessary. How else do you prorate the sq footage, various expenses and limitations, etc.?

Looks like I have to go back now and read the 8829 instructions (at the least).

Addition:

Just read the 8829 instructions -- it says quite clearly in the 3rd paragraph, do not use if you are an employee, instead use a worksheet in Pub 587.

Now you can see how often my clients come in to see me with an approved home office as an EMPLOYEE.

[tacks]

Thanks Travis. (actually i should be the one reading )

[tacks]

Just read the 8829 instructions -- it says quite clearly in the 3rd paragraph, do not use if you are an employee, instead use a worksheet in Pub 587.

Now you can see how often my clients come in to see me with an approved home office as an EMPLOYEE.

Well thank you very much, Travis! Doing my work for me!

[travis bickle]

No thanks are due

Well thank you very much, Travis! Doing my work for me!

In my original post I said I was answering off the top of my head without doing any research -- now we can all see how dumb I am.

[tacks]

In my original post I said I was answering off the top of my head without doing any research -- now we can all see how dumb I am.

Travis, if it was someone else posting the original question i might have given the exact same answer that you did. I don't wish to belabor the point but i think your comment was well within the boundaries of what is 'fair and reasonable ettiquette' for an online forum. Again, i thank you for your contribution and hope you continue posting.

[taxxcpa]

2006 Oih

I've used the Form 8829 to calculate a home office deduction even when not required because the software does the work. After you prepare it and get the deductible amount, you could then delete the form, or print it (paper copy or PDF) for your files, then put the result on Form 2106.

[tacks]

Thanks TaxCpa,

That's pretty much what i'm doing. Except i'm putting the figure on the 2106-EZ form instead of the longer one.

[Davc]

I've used the Form 8829 to calculate a home office deduction even when not required because the software does the work. After you prepare it and get the deductible amount, you could then delete the form, or print it (paper copy or PDF) for your files, then put the result on Form 2106.

Drake does the form as a worksheet.

[Burke]

Drake does the form as a worksheet.

So does ATX. I also note when this worksheet is used, the mtge interest and real estate taxes are not part of the worksheet, since they are already on the Sche A, and this worksheet would not be completed unless you were doing a Sche A to begin with, since it goes on Line 22.

[FEDUKE404]

OIH question

I was just wondering how, for the employee, you/she addressed the "regular and exclusive use" issue to claim the home office.

Is there a portion of her residence with "XYZ Company" on the door or something, and is the computer the same one she uses in the spare bedroom for all other "personal" office and/or internet browsing activities?

Then you toss in does her boss require (in writing) for her to have a computer, etc.

Rest assured I'm not tossing any pebbles here, just curious as these type of questions do come up in a thorough client interview.

FE

[Burke]

This person is a travelling salesman. He used to be paid straight commission as independent contractor, but one company bought out another and they now treat as employee with W-2. He does not work for himself or any other companies. Otherwise, nothing changed. No local office. Office set up in home and used regularly and exclusively for compiling orders, transmitting buys, delivery of merchandise, emailing, phone calls, etc. We used to do Sche C & 8829, now do 2106. New company gave auto allowance for a while, reimburses some travel expense, but it keeps changing, and more shifted to employee.

[erchess]

Feduke

I don't understand all of your comments. I don't believe that an employee's home office needs there to be a sign anywhere on the property indicating that an office of the company is there. I do agree that if there is a desktop computer in the office there better not be any personal use of the computer because is not credible to say it gets moved before being put to personal use. On the other hand if the client has a laptop instead of or in addition to the desktop in the home office then it is entirely believable that when used for personal purposes it is not in the home office. Of course since a laptop like any computer is listed property, if documented business use falls below 50% there is no deduction for it. Would the fact of its frequent presence in the home office be the same as having say a TV or Stereo there?

Anyone besides FEDUKE also feel free to jump in.

[DonPriebe]

Of course since a laptop like any computer is listed property, if documented business use falls below 50% there is no deduction for it.

A laptop that is a legitimate part of a home office is NOT listed property.

Listed property with a business use under 50% is depreciated using ADS.

[Davc]

A laptop that is a legitimate part of a home office is NOT listed property.

As long as it never leaves the exclusive use home office.