Form 8829 incorrect calculation

Forum|Forum|5 years ago
March 16, 2021
1 reply
0 views

On Form 8829:

39 42,000

40 15,931

41 3.1747%

42 10, 334

LINE 42 should be 506

This is apparently a BUG. How do I change this on the form? I can not access the actual form (all instructions to access the form that I've read on this site do not work).

JoannaB2

Level 9

No, you can't change the form. The amount is computed based on the figure entered starting on 37 up to 41 to come up with the total allowable depreciation on line 42. .The form 8829 is used to compute expenses for business use of home. The allowabe expenses will be transferred over as business deduction on form Schedule C line 30.The amount of depreciation is computed by multiplying the basis of the building by the percentage of the area of the home used for business

Line 37 - cost basis of the home.
Line 38 - value of the land..
Line 39 - basis of the building (cost basis of building - value of land).
Line 40 - Business basis of the building (line 39 x business percentage of the area used for business (are used for business over total area of the home).
Line 41 - business percentage. See screenshot below.
Line 42 - allowable deprecation entered on line 30 of form 8829.

277235Author

Level 2

Thank you for the reply, but the screen shot has little to do with my problem. The calculation done by the program is wrong. Last year's return calculated the lines correctly, based on the percentage on line 41(3.1747%); this year's, with same data in lines 37-41, has totally screwed it up. 3.1747% times 15.931 on line 40 can not be 10, 334 on line 42! I can not file a tax return with this ridiculous number. Why can't I change the amount on the form itself?