Screen 8829 - Home Office Expenses (1040)

Alerts and notices

Leave feedback

Please rate this topic.

Excellent  |  Good  |  Average  |  Poor

Did you find the information you need?

Yes  |  No

Name (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Overview

Use this screen to enter home office information for business activities. UltraTax CS uses this information to calculate the allowable home office deduction for a specific activity.

Electronic filing note: When entering data for electronic returns, you need to follow specific IRS guidelines to ensure that the return will not be rejected. For details, see the "data-entry guidelines" section of General and input screen-specific topics for electronic returns.

Home office information can be used with forms other than Schedule C. Use Screen 8829 to enter home office information for Schedules A, C, F, K-1, E-Rental, Form 2106, or a miscellaneous activity. UltraTax CS produces Form 8829 only with Schedule C. For the other forms and schedules, the Business Use of Your Home Worksheet is produced. UltraTax CS calculates a home office deduction for a miscellaneous activity, but the deduction does not transfer to the activity. Enter the calculated home office deduction directly on the miscellaneous activity's input screen.

Home office information entered in Screen 8829 for a K-1 Partnership activity reduces ordinary income as an unreimbursed partnership expense, and prints the Home Office Worksheet. In addition, the deduction reduces Schedule SE and other earned income calculations, if applicable.

Note: UltraTax CS provides a client-specific option to specify the method of entering asset information: either enter home office information in the asset module or in the various depreciation screens. When using the asset module for data entry, this screen is not applicable and does not appear. To enter asset information using this screen, choose File > Client Properties, click the Advanced Properties button, and clear the Enter asset detail information checkbox in the Enter Asset Detail tab. For more information about asset data entry, see Where do I enter asset data?

See also

Source data entry

The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data to UltraTax CS and transfer it into your client data files via the data sharing feature. The following facsimiles are available in the Source Data Entry utility.

W-2 Series 1098 Series 1099 Series Schedule K-1 and Other
W-2
W-2G
1098
1098-E
1098-T
1098-C
1099-B
1099-B Brokerage
1099-C
1099-Div
1099-G
1099-Int
1099-K
1099-LTC
1099-Misc
1099-Q
1099-R
RRB-1099
SSA-1099
1099-S
1099-SA
1099-PATR
1099-OID
1099-A
RRB-1099-R
Sch K-1 (1041)
Sch K-1 (1065)
Sch K-1 (1120S)
1097-BTC
2439
5498-SA
Charitable Contributions
Medical Expenses

Preparers should diligently review all data that is imported through the UltraTax CS Source Data Entry utility. UltraTax CS cannot determine if amounts entered via the Source Data Entry utility duplicate data that was included in the return from another source. Do not use the Source Data Entry utility to enter data that would also be imported from a general ledger program, shared from Creative Solutions Accounting (CSA) or Accounting CS (ACS), proforma'd from prior-year information, transferred from Fixed Assets CS, or imported from a web client organizer. For more information, see UltraTax CS Source Data Entry frequently asked questions: How does data imported from other sources affect amounts entered via Source Data Entry?

Asset module transfer

Data entered in the asset module automatically transfers to the appropriate field(s) on this screen. UltraTax CS displays the transferred data in blue text. View example.

Transferred data in blue

You can overrule the transferred amount by entering the appropriate amount in any transferred field.

Notes

  • UltraTax CS does not overwrite an overruled fields with any subsequent asset module transfers.
  • Overruled field values will be used in the calculation of the return.
  • To restore the transferred amount, right-click and select Delete overrule.
  • To acknowledge an overruled field, right-click and select Acknowledge overruled data.

For more information on Overrules, please see Statements overview and Enabling notifications of overruled data.

Destination of home office deduction

When UltraTax CS determines the allowed home office deduction, it reports the amount on the applicable form or schedule. The table that follows lists where the home office deduction is reported.

Form / Schedule Destination
Schedule A line 21 (Misc. itemized deductions)
Schedule C line 30
Schedule E Part I, line 19 (Other expenses)
Schedule E line 28, column h, (Unreimbursed Partner's Expense)
Schedule F line 32 (Other expenses)
Form 2106 line 4 (Other business expenses)

Multiple 8829s with one activity

UltraTax CS allows you to enter multiple units of Screen 8829 related to one form or schedule. Two home office locations can be entered per activity.

Note: UltraTax CS does not allocate an activity's net income between two or more Forms 8829; therefore, you must enter an amount to force net income on the related activity's input screen.

Home Office General Information

Use this section to enter the general home office information.

These fields contain information about the business unit activity. UltraTax CS uses this information to gather and coordinate information for the business unit activity. For example, these fields enable UltraTax CS to link information (such as income, loss, sales, credits, and asset detail) for the activity. The following table lists the available forms and the folders in which they are located.

Folder Form description
Business Schedule C
Farm Schedule F
K1 1065, 1120S Schedule K1 S-corp / Partnership
Rent Schedule E, Page 1
Itemized Schedule A, 2106, Misc

Because there are multiple forms available in the Itemized Deduction folder, enter the form information. The available forms in the Form field are listed in the table that follows and in the fieldview.

Form code Form description
A Schedule A
2106 Form 2106
H-SchA Home office worksheet - Schedule A
H-2106 Home office worksheet - 2106
H-Misc Home office worksheet - Misc
Misc Miscellaneous
M Miscellaneous

The description entered in this field is used as the unit description. This field is mandatory.

When processing a state return, enter the two-character postal code for the state to which this unit belongs. This code is used by the various state applications to help determine in-state and out-of-state amounts.

Note: A postal code entry is required for proper state processing.

See State fields in UltraTax/1040 for more information.

Enter X in this field to use the simplified method of computing the home office deduction. When marked, UltraTax CS will use the information entered in the Business Use of Home sectiion for square footage, and the activity's income to compute the simple method of home office per Schedule C, Profit or Loss from Business instructions. A nonsubmittable statement will print to support the calculation.

Note: Amounts entered for mortgage interest and real estate taxes will transfer to Schedule A.

If the client has more than one home office for the same activity, enter the number 1 or 2.

If the client has more than one home office relating to the same activity, enter a description that differentiates each office. For example, enter "Home on Baxter Road," or "Home on Main Street." You can also enter the street address of each location of the home office.

Part I - Business Use of Home

Use this section to enter the area of the taxpayer's home used exclusively for business and the total area of the home. If the home is used for day-care facilities, also enter the number of hours the home is used. Enter the total hours the home was owned in the year if less than 8,760. UltraTax CS calculates the business percentage based on the information in this section.

Enter information for day-care facilities in the asset module. Day-care hours and the Special computation… fields are used only with Form 8829 and the related Schedule C.

When using the asset module, data is transferred to these fields.

When using the asset module, data is transferred to these fields.

When using the asset module, data is transferred to these fields.

Part II - Allowable Deductions

Use this section to enter allowable deductions. UltraTax CS uses this information to complete Parts II and III of either Form 8829 or the Business Use of Your Home Worksheet.

Note: The nonbusiness portion of deductible mortgage interest, qualified mortgage insurance premiums, and real estate taxes transfers to Schedule A.

Enter an amount to override (force) the casualty loss amount calculated on Form 4684. UltraTax CS assumes that the casualty loss amount calculated on Form 4684 is directly related to the home office; if the amount is not directly related use this field to force the correct amount in both the direct and indirect expense columns. You may enter 0 (zero) in this field.

Carryovers are maintained in these fields rather than in Screen CO because they need to be maintained on an activity-by-activity basis.

Enter an applicable holding period for the amount entered in the Carryovers from 2012 to 2013: Casualty losses field. UltraTax CS defaults to a short-term holding period if no entry is made.

Enter those expenses that are not related to the business use of the home. Amounts entered here are reported on Schedule A, Miscellaneous deductions subject to two percent.

Part III - Depreciation

Enter depreciation information in this section to complete Part III of either Form 8829 or the Business Use of Your Home Worksheet.

When using the asset module, depreciation data is transferred to these fields.

Share This