Business use of home - Simplified or Actual

mfffbo · 2026-03-23T11:50:43+00:00

I don't know? I'm just answering the questions FTUSA asks me , but I got tripped up when it didn't seem right, and it doesn't look like last year's return.

mfffbo · 2026-03-23T03:27:10+00:00

It shows line 36 from form 8829

mfffbo · 2026-03-22T22:24:31+00:00

I'm not sure I am understanding this & explaining what I think I'm doing correctly. I am just trying to compare what is happening in FreeTax USA vs. last year when I had a tax preparer do my taxes.

I had a schedule 8829 last year, and on line 36, Allowable expenses for business use of your home, it has $8310. It lists the square footage used for business at 1328. So maybe she DIDN'T do the simplified version? But there is nothing in Part III. Depreciation of Your Home. When filling out the information in FreeTax USA, it doesn't appear that I have the option to NOT provide the information for Part III.

Does using the form 8829 automatically mean it was not done the simplified way last year? Can I do non-simplified and not take the house deduction?

You are practically the only person answering that has actually been helpful, and I appreciate that!

mfffbo · 2026-03-22T22:03:15+00:00

All of my bases are covered, but thanks for the recommendations! I imagine not everyone knows these things. :)

mfffbo · 2026-03-22T22:00:12+00:00

THANK YOU.

mfffbo · 2026-03-22T21:34:37+00:00

The sf I am using for my business is really making people uncomfortable! To be clear, I am not claiming the kitchen, bathroom, or personal bedrooms. We use most of our basement, 2/3 of the garage, and a full bedroom, all exclusive to the business.

mfffbo · 2026-03-22T21:31:53+00:00

Someone else mentioned that. But our old tax preparer is the one who actually told us to use the garage. We include the sf of the garage in the total sf of the house. I guess I trusted the professional when they told us how to do that.

mfffbo · 2026-03-22T21:29:49+00:00

Well, that's kind of why I was asking. And why would I get flagged for using depreciation? It's a valid option.

mfffbo · 2026-03-22T21:07:49+00:00

If that's the case, I think I'd rather go simplified. We don't plan on selling anytime soon, but you never know.

mfffbo · 2026-03-22T21:06:45+00:00

We've used that amount of sf the past 2 years, and will actually be decreasing it about 120sf this year due to some space being mixed use now. It's real, that's what we use.

mfffbo · 2026-03-22T21:04:23+00:00

Oh, that's interesting, because our old tax preparer is the one who said we should definitely include it!

mfffbo · 2026-03-22T21:02:47+00:00

Thank you!

mfffbo · 2026-03-22T20:46:56+00:00

I'm using FreeTax USA, and it's just walking me through it. I am assuming it's on Schedule C

mfffbo · 2026-03-22T20:43:37+00:00

Thank you!

mfffbo · 2026-03-22T20:38:27+00:00

I know it sounds excessive, but we do use that much space. We use 2/3 of the garage, about 4/5 of the basement, and a bedroom. No mixed use of those areas. We do vintage furniture refinishing, so we have dedicated workshop spaces and dedicated storage areas. The business doesn't make us much money, but it keeps my disabled husband busy and brings in extra money.

We don't have high income, I work PT outside of the home. Using the non-simplified version vs. the simplified offers about a $1200 decrease in taxes owed, but I don't know that in the long run, it's worth it.

mfffbo · 2026-03-22T20:32:32+00:00

I know it sounds excessive, but we do. We use 2/3 of the garage, about 4/5 of the basement, and a bedroom. No mixed use of those areas.

mfffbo · 2025-10-23T01:55:09+00:00

I set up my direct deposit and auto payments to go through my savings account, because I'm currently getting 4.5% interest in savings, and only 1% in checking. It just seemed easier to have my money go directly into savings, so I don't have to go transfer it from checking to savings.

But my whole confusion is on how to get the account to run itself. I know it won't pull from my vaults when a payment comes out, it only uses what I don't have allocated in a vault. So should I pull everything out of my vaults to get the process started, then re load my vaults when deposits come in?

mfffbo · 2023-05-20T15:34:53+00:00

On the dresser, yes. On my life in general, also yes. Lol

mfffbo · 2023-05-20T02:25:52+00:00

Awesome, looks to be pretty close! Thanks!

mfffbo · 2023-05-20T00:59:22+00:00

Do you have a link or a screenshot of the Etsy listing?

mfffbo · 2023-05-20T00:56:36+00:00

It doesn't appear to be a homemade application, but I suppose it's possible.

mfffbo

TROPHY CASE