Ask TaxMama ... Not at Home With Office in Home ... March 23, 2001

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Tax Information With A Mother's Touch

Published by Eva Rosenberg, MBA, EA
Volume 3 Issue 105 March 23, 2001

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Not at Home With Office in Home

From: Greeneville, TN

Hi Tax Mama,

I'm not sure how to enter direct vs indirect expenses on IRS Form 8829.

Martha

Hi Martha,

Well, let's see ... direct goes into one column and indirect goes into the other...

Oh, that's not what you're asking, is it?

Ok. Direct expenses are things that you spend ONLY for the office part of the house.

For instance, if the office has a separate electric meter, you could deduct ALL the electricity costs, instead of splitting up the bill for the whole house.

Some usual direct expenses:

Painting just the office.
A housekeeper who only comes in to clean the office - or actually gives you an invoice just for the office portion.
Repairs - phone, carpentry, etc. that took place only in the office part of the house.

Generally, you will use the indirect column for rent or mortgage, property taxes, utilities.

Oh, and if you are paying rent - that amount goes on the 'other' line. Don't ask me why the form is only designed for homeowners. Most people I see who use it are renters. (The consequences for homeowners who move every couple of years are too costly.)

Does this help?

Best wishes
Your TaxMama

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