Common questions about Form 8829 in ProSeries

To elect the simplified method for the Form 8829:

1. Open the Form 8829.
2. Go to Part I, the Simple Method Smart Worksheet.
3. Check the Yes box to "Do you elect the simplified method for Home Office expenses in 20XX" (xx=2 digit tax year).
4. Answer the question "Did you elect to use the simplified method in 20XX?"
5. Complete rest of Form 8829 as required

Note: The Simplified Method election is made on a yearly basis.

Amounts entered as in the Direct Expense Column will take the full amount as a deduction,  Direct Expense should be amounts attributable only to the Home Office.

Amounts entered as an Indirect Expense will affect the entire home and only a percentage of the Indirect Expense will be deducted for the Home Office (allocated between business use and personal use based on the business use percentage).

ProSeries software supports up to 2 copies of Form 8829 per Schedule C.  An adjustment on Schedule C may be necessary to accommodate the figures that would be from additional copies of Form 8829.

The government instructions for Form 8829 state: " Use Form 8829 to figure the allowable expenses for business use of your home on Schedule C (Form 1040)..." The instructions also specifically state that any expenses related to the business use of your home for partners or that are related to a Schedule F should be computed using Publication 587.

Since the government instructions indicate the 8829 can only be linked to the Schedule C, ProSeries does not link the 8829 to a different Form or Schedule.

Workaround:

1. Open a Schedule C.
2. Quick Zoom from line 30 for Form 8829, Expenses for Business Use of Home.
3. Calculate the expenses for home office.
4. Print Form 8829.
5. Remove Form 8829.
6. Enter Home Office expenses on the Form or Schedule as needed. For example, the expenses for a Schedule K-1 Partnership can be entered on line 10 of the Supplemental Business Expenses Worksheet.
7. Amounts entered will then flow to the bottom of the K-1 P, page 3 Section A on the line for Unreimbursed Expenses.