Talk:Business Use of Home - Is It Deductible?

From TaxAlmanac

How do people recommend determining what portion of the house is used for business, i.e., do you go by square footage, number of rooms in the house, etc..?

Thanks, Jeffrey Kahn

Using square footage to determine what portion of the house is used for business is by far the most common method. However, according to Publication 587, any reasonable method can be used to determine the business percentage.

Also keep in mind that you aren't required to use that business percentage for every indirect expenese. The Form 8829 instructions list the following exception: "If the business percentage of an indirect expense is different from the percentage on line 7, enter only the business part of the expense on the appropriate line in column (a), and leave that line in column (b) blank. For example, your electric bill is $800 for lighting, cooking, laundry, and television. If you reasonably estimate $300 of your electric bill is for lighting and you use 10% of your home for business, enter $30 on line 19 in column (a). Do not make an entry on line 19 in column (b) for any part of your electric bill."

J. Harvey