Form 8829 percent of gross income schedule c

[AnnetteB · Accepted solution]

There is a limitation related to home office expenses and the income that was earned while using the home office.  This question is gathering information to apply that limitation. 

The question is asking what percentage of your business gross income is attributed to work done in your home office. 

For example:  If all your work is done in your home office, enter 100 (for 100%).  But if you figure that one-fourth of your income is made on the road (or anywhere outside of your home office) and three-fourths of your income is made from your home office, enter 75 (for 75%).

[Cheapskate2020]

Does this refer to my percentage of income earned for ONLY my home based business, and not the percentage of other income I've earned in addition to (not related to) my home-based business?

I gained income from a job as an employee, and unemployment income, in addition to the small amounts I earned freelancing in my home-based business.

[KathrynG3]

Yes, it refers to the income earned for the home-based business. Keep in mind this office space must be used exclusively for the home based business. 

Using the Home Office deduction simplified method for the square footage will avoid having to recapture the depreciation if the home is later sold. 

For more information, see: 

Can I take the home office deduction?

The Home Office Deduction - TurboTax Tax Tips & Videos

@Cheapskate2020