Per IRS Instructions for Form 8829, page 5:

Complete and attach Form 4562, Depreciation and Amortization, only if:

• You first used your home for business in 2023, or
• You are depreciating additions and improvements placed in service in 2023.

The TaxAct program will automatically create Form 4562 if the date of the improvement entered on Form 8829 is in the current tax year. TaxAct supports only one addition/improvement for Federal Form 8829. If you have more than one addition/improvement, you can still file your return with TaxAct, however you will need to file a paper return (if you print Form 8829, Form 4562 will also print). Instructions to accomplish this are outlined below.

1. Print a copy of Form 8829 that shows the original improvement listed. This form is needed for the information to be entered in the final steps. However, this Form 8829 will not be filed (if you need help printing in the TaxAct program, go to our Printing Your Return and Individual Forms FAQ).
2. Create and print a Form 4562 for the current year improvement. The IRS Instructions for Form 8829 list the depreciation rates for improvements placed in service in the current year and the Form 4562 created will accurately reflect the correct rate.
   To enter the information to print Form 4562 for the improvement for the current year (if you need help accessing Form 8829, go to our Form 8829 - Entering in Program FAQ):
   1. From within your Form 8829, on the screen titled Business Use of Home - Method, then click the circle next to Regular Method.
   2. On the screen titled Business Use of Home - Addition or Improvement, click the data entry field below Total cost or other basis of addition or improvement and type the amount, then click the data entry field below Date addition or improvement placed in service and enter the date.
   3. Continue with the interview process to enter your information.
3. Print a copy of Form 8829 (and Form 4562) at this time. This Form 4562 will be filed with the return, however, this Form 8829 should not be filed with the return.
4. Go back and enter the total cost of both improvements (prior year and current year). Enter the business basis of both improvements on Form 8829 as one total.
   To edit the information to calculate the total of both improvements for Form 8829:
   1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal)
   2. Click the Business Income dropdown, then click Business income or loss from a sole proprietorship.
   3. Click Edit next to the Schedule C you are working on (desktop program: click Review instead of Edit).
   4. Click Review next to Business Use of Home, click Yes, then click Edit next to the Form 8829 you are working on.
   5. On the screen titled Business Use of Home - Addition or Improvement, click the data entry field below Total cost or other basis of addition or improvement, and enter the cost or other basis of both improvements.
   6. On the screen titled Business Use of Home - Depreciation Adjustment, click the data entry field below Depreciation adjustment for addition or improvement, and enter the adjustment for both improvements.
   7. On the screen titled Business Use of Home - Computation, click the data entry field below Computation used to calculate depreciation adjustment, and add the prior year computation text after the current year's computation text.
5. Print a copy of Form 8829 (and Form 4562) at this time. This Form 8829 will be filed with the return, however, this Form 4562 should not be filed with the return.

Related Links

• Form 8829 Expenses for Business Use of Your Home
• Form 4562 Depreciation and Amortization

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.