How to Categorize Home Office Expenses for your Schedule C and in QuickBooks

Willing to know how to categorize home office expenses for your schedule C and in QuickBooks? This article is for you, it will serve you to categorize your home office expenses, go through the complete article you will get steps, description, and categorization in a detailed manner. Complete tutorial package in this article to perform categorization of home office expenses for your schedule C and in Quickbooks. Still feel difficulties to resolve the issue, connect with us our QuickBooks ProAdvisor will help you,+1-855-525-4247

Learn the Concept to Categorize Home Office Expenses for your Schedule C and in QuickBooks. Suppose you are working from your home office rather than working in an offsite workplace then you might be capable of deducting some common expenses. Home Office expenses come under one of the largest deductions you will get when you are self-employed. 

In this article, you will know the steps you were taken to enter your home office footage and categorize expenses such as rent, mortgage, and many others in QuickBooks Self-Employed. The following steps ensure you that you have everything when your tax-filling time nears you. Start your reading by staying connected with us.

Step 1: View what qualifies as a home office expense

 You need to know what qualifies as a home office deduction and the other different deduction methods used by the IRS.

Step 2: Enter your home office square footage

Do this with easy and simple steps and follow it in the given format. These are:

  • First of all, inside the QuickBooks Self- Employed, simply visit the Taxesmenu
  • Choose the “Annual” tab
  • From the drop-down menu, choose “Home Office expenses” option
  • Then, you can either pick “Add a home office” or “Current Home Office” if the square footage is already entered in it
  • Choose a tax year
  • Choose the “Simplified method” or “Regular Method” tab
  • Now you have to enter the estimated home office square footage
  • Once all the steps are successfully processed and everything is done then choose “Save” 

Note: Visit back and then choose the “Home office expenses” section. This will represent your estimated deduction with each specific method.

Step 3: Categorization of home office expenses for your Schedule C

Whenever you are willing to enter or download home office expenses into QuickBooks Self-employed, simply categorize them as your home office expenses.

List of these types of transactions which you can easily categorize as home office expenses:

  • Mortgage(home office)
  • A homeowner or Rental insurance
  • Mortgage Interest(home office)
  • Rent and Lease(home office)
  • Repairs and Maintenance(home office)
  • Utilities(home office)
  • Property tax(home office)
  • Other home office expenses

Tip: We are highly advised to use the Office supplies category for categorizing office supplies and assets for things such as Computers.

Check out which Expenses Category will go which Correct Line On Form(IRS Form 8829)

S.NOCategory of ExpensesDescriptionIRS Form
1.Home Office Rent and LeaseIt involves the cost of rent and leases when you are having a home office. In the General RENT and LEASE category, you have to enter your rent and lease of office furniture and equipment instead of any other category.IRS Form 8829, line 18 “Rent”
2.Home Office Repairs and Maintenance It involves the cost of repair and upkeep of your home or home office, it doesn’t add value. Replacements or upgrades are taken as assets rather than others. General home repair and upkeep are equally deducted, repair and upkeep purposely for your home office is usually 100% deductionIRS Form 8829, line 19 “Repairs and Maintenance”
3.Home Office Home/rental InsuranceIt involves the cost of the homeowner or renters insurance when you are having a home office. Many other Business Insurance will use the general BUSINESS INSURANCE category rather than others.IRS Form 8829, line 17 “Insurance”
4.Home Office Mortgage InterestIt involves the cost of interest that will be charged on your mortgage when you have your own home, or you are having an office. Tip: The interest portion of your mortgage payment is only deductible. The principal portion is not mentioned in it.IRS Form 8829, line 10 “Deductible mortgage interest”
5.Home Office UtilitiesIt involves the cost of utilities including phone, electricity, and water(your home necessities) if you are having a home office. For all other business utilities, you have to use the general “UTILITIES” category rather than others. IRS Form 8829, line 20 “Utilities”
6.Home Office Property TaxIt involves the cost of property taxes which you owned, if you are having a home office, own your home, also pay property taxes of itIRS Form 8829, line 11 “Real estate taxes”
7. Home Office Other ExpensesIt involves cost for expenses for the office that doesn’t fit the other home office categories. In an example, you might use neighborhood association dues or your home security feesIRS Form 8829, line 21 “Other Expenses”

In Bottom Line

We hope, we will give you the right track to categorize Home Office Expenses for your Schedule C and in QuickBooks. We have covered all the effective information in the tabulated form so that you can get a better understanding of expenses(home office expenses). Are you seeking Help? Ready to talk to one of our Intuit Certified Proadvisors to instantly resolve your QuickBooks Problem through the toll-free number +1-855-525-4247. You can also give your valuable comments and ask your queries about this article.

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