Multiple home offices in same tax year

[mwarney]

If one person has numerous related businesses, this can also be done on one SCH C with one 8829....why create more work? Unless, of course, the idea is to soak the client for separate fees.

The idea is to report accurately without creating undo exposure to audit.

[mwarney]

keep the worksheets in your file and deduct the expenses where they go. Nothing more is required. So if you are worried about multiple 8829s don't send one in.

Again, can one take the position that some forms are provided as a convenience? and that, so long as the final numbers are true and accurate, one could combine or even omit a form? I'm just playing "devil's advocate" here... I think this is an interesting point, and I think it would be great to simplify as much as possible. But I am also wondering how the IRS would feel about combining and/or omitting forms.

[taxxcpa]

Multiple 8829s

It's true you may be able to do it in the software you are using but I suspect that the IRS would question more than one 8829 per Sch C, 2106.
If one business form is prepared there should be only one 8829. If MFJ have separate Sch C's but use the same home office for their separate businesses, one joint (by statement) 8829 would be appropriate. One could even allocate the expenses to each spouse on the single 8829.
If one person has numerous related businesses, this can also be done on one SCH C with one 8829....why create more work? Unless, of course, the idea is to soak the client for separate fees.
I have one client that has five related businesses (sole proprietor) Yes, I could charge him separately for each business and allocate by income five separate 8829s...but that seems like over-kill on fees to me.
Since the Feds allow either spouse to combine gambling losses I don't see the complying of income/expenses wouldn't be acceptable as long as the motive, method and calculations to reach the final total are documented. taxea

How would you handle depreciation and office square footage? If you change residences, the square footage will be different and the cost of the house will be different. I see no reasons why two or three 8829s would be inappropriate since there is no other appropriate way to do it. You could use some contrived single 8829 to get the same results with some sort of 'average' cost and sq footage, but the next year you would have to change all these figures which would not look correct without an involved explanation.

[veritas]

Again, can one take the position that some forms are provided as a convenience? and that, so long as the final numbers are true and accurate, one could combine or even omit a form? I'm just playing "devil's advocate" here... I think this is an interesting point, and I think it would be great to simplify as much as possible. But I am also wondering how the IRS would feel about combining and/or omitting forms.

That's what I am saying. The form 8829 is not required. That is the position I am stating. But I'm open to correction.

[mwarney]

That's what I am saying. The form 8829 is not required. That is the position I am stating. But I'm open to correction.

Do you know if there are any written IRS references to this? This would simplify things greatly!

[veritas]

I guess I will correct myself

From Pub 587

"If you are self-employed and file Schedule C (Form 1040), complete and attach Form 8829 to your return."

[JG EA]

How would you handle depreciation and office square footage? If you change residences, the square footage will be different and the cost of the house will be different. I see no reasons why two or three 8829s would be inappropriate since there is no other appropriate way to do it. You could use some contrived single 8829 to get the same results with some sort of 'average' cost and sq footage, but the next year you would have to change all these figures which would not look correct without an involved explanation.

I agree with this. It would be the same thing as combining Sch C's when they should be separated. Do what needs to be done.

[joanmcq]

I have done two 8829s for clients that have moved and I don't see the problem with either the software or that it is unjustifiably pushing up fees. I use ATX and it is a simple question of linking the forms to the business. Doing any kind of mish-mash would be inaccurate reporting IMHO, and the time spent on the calculations would be more than just preparing two or three forms. The 8829 asks for square footage, which would be different for each of the offices, and the depreciation calculations would be inaccurate for the owned properties, and accounting for the recapture seems it would require a lot of overrides rather than letting the software do its thing. An office shared by multiple businesses is split by time spent on each business. Husband & wife sharing an office for two businesses requires two 8829s, again split based on square footage used.

[S T]

Myself as well

I have in the past, because taxpayer moved on more than one occasion in one tax year, have filed as many as 3 form 8829's. Has not been an issue.

I filled out each 8829 with the appropriate square footage(total and business) and the appropriate figures that related to each 8829. My software carried to the appropriate schedule.

I can't remember though whether or not I efiled. That might be an issue. Paper file for sure is okay.

I don't believe it is an issue for filing purposes, just make sure you have all the documentation needed to support the home office deduction.

Sandy

[joanmcq]

I've efiled with multiple 8829s. Its not an issue.

[DonPriebe]

8829 e-file limit

I've efiled with multiple 8829s. Its not an issue.

According to Pub 1345-A, you can e-file a return with a maximum of four 8829s per Schedule C.

[mwarney]

Great info people... Thank you all very much. I will file the three required forms.