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Per IRS Publication 587, Business Use of Your Home, page 7:

If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. To figure your deduction, multiply your rent payments by the percentage of your home used for business.

If you own your home, you cannot deduct the fair rental value of your home. See Depreciating Your Home in IRS Publication 587 Business Use of Your Home.

(page 1): Employee expenses for business use of the home no longer allowed. You can no longer claim any miscellaneous itemized deductions on Schedule A, including expenses for using your home as an employee. Miscellaneous itemized deductions are those deductions that would have been subject to the 2% of adjusted gross income limitation.

If you are self-employed and file Schedule C (Form 1040):

  1. Complete Form 8829, Expenses for Business Use of Your Home.
  2. The calculation is then transferred to Schedule C, Line 30.

To enter information for self-employed business use of home expenses in TaxAct:

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Business Income to expand the category, then click Business income or loss from a sole proprietorship
  3. Click New Copy of Federal Schedule C (Desktop users click Add) to create a new copy of Schedule C, or click Review to review a copy already created
  4. Continue to the screen titled Business Income - Home Business Use and click Yes
  5. The program will proceed with the interview questions for you to enter the appropriate information

Refer to IRS Publication 587 for additional information.

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