! will need to file a separate Schedule C for each

CAUTION business. Don’t combine your deductions for each

business use on a single Schedule C.

Business use of more than one home. You may have used more than one home in your business. If you used more than one home for the same business during 2025, you may elect to use the simplified method for only one home; you must file a Form 8829 to claim a business use of the home deduction for any additional home. If one or more of the homes were not used for the entire year (for example, you moved during the year), see Part-year use or area changes (for simplified method only), later, and Columns (a) and (b) in the Instructions for Form 8829.

Other requirements must still be met. You must still meet all the use requirements to claim a deduction for business use of the home. The simplified method is only an alternative to the calculation, allocation, and substantiation of actual expenses. The simplified method is not an alternative to the exclusivity and other tests that must be met in order to qualify for this deduction. For more information about qualifying business uses, see Qualifying for a Deduction in Pub. 587 .

Gross income limitation. The amount of your deduction is still limited to the gross income derived from qualified business use of the home reduced by the business deductions that are not related to your use of the home. If this limitation reduces the amount of your deduction, you can’t carry over the difference to another tax year.

Carryover of actual expenses from Form 8829. If you used Form 8829 in a prior year and you had actual expenses that you could carry over to the next year, you can’t claim those expenses if you are using the simplified method. Instead, the actual expenses from Form 8829 that were not allowed will be carried over to the next year that you use actual expenses to figure your deduction.

Carryover of actual expenses for Form 1040-SS filers. If you filed Form 1040-SS in a prior year and used a worksheet in Pub. 587 to figure your actual expenses that you could carry over to the next year, you can’t claim those expenses if you are using the simplified method. Instead, the amount of your Operating expenses and Excess casualty losses and depreciation from your worksheet in Pub. 587 that were not allowed will be carried over to the next year that you use actual expenses to figure your deduction. The next time you claim actual expenses, you need to file Form 8829.

Depreciation of home. You can’t deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of your home that is used in a qualified business use if you figure the deduction for the business use of your home using the simplified method. The depreciation deduction allowable for that portion of the home for that year is deemed to be zero.

Although you can’t deduct any depreciation or section

TIP 179 expense for the portion of your home that is a

qualified business use because you elect to use the simplified method, you may still claim depreciation or the section 179 expense deduction on other assets (for example, furniture and equipment) used in the qualified business use of your home.

Figuring your allowable expenses for business use of the home. You will figure the deduction using Form 8829 or the Simplified Method Worksheet or both.

When determining the average monthly allowable square footage, you can’t take more than 300 square feet into account for any 1 month. Additionally, if your qualified business use was less than 15 days in a month, use -0- for that month.

Example 1. Finley files a federal income tax return on a calendar year basis. On July 20, Finley began using 400 square feet of the home for a qualified business use. Finley continued to use the 400 square feet until the end of the year. Finley’s average monthly allowable square footage is 125 square feet (300 square feet for August through December divided by the number of months in the year ((300 + 300 + 300 + 300 + 300)/12)).

Example 2. Riley files a federal income tax return on a calendar year basis. On April 20, Riley began using 100 square feet of the home for a qualified business use. On August 5, Riley expanded the area of qualified business use to 350 square feet. Riley continued to use the 350 square feet until the end of the year. Riley’s average monthly allowable square footage is 150 square feet (100 square feet for May through July and 300 square feet for August through December divided by the number of months in the year ((100 + 100 +100 + 300 + 300 + 300 + 300

• 300)/12)).

Example 3. Carter files a federal income tax return on a calendar year basis. From January 1 through July 16, Carter used 300 square feet of the home for a qualified business use. On July 17, Carter moved to a new home and immediately began using 200 square feet of the new home for the same qualified business use. Using the simplified method to deduct expenses for the qualified business use for the previous home, Carter’s average monthly allowable square footage is 175 square feet (300 square feet for January through July divided by the number of months in the year ((300 + 300 + 300 + 300 + 300 + 300 + 300)/12)). Carter also prepared Form 8829 to deduct the actual expenses associated with the qualified business use of the new home.

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Using Form 8829. Use Form 8829 to figure and claim this deduction for a home if you are not using or cannot use the simplified method for that home. For information about claiming this deduction using Form 8829, see the Instructions for Form 8829 and Pub. 587 .

Using the simplified method. Use the Simplified Method Worksheet in these instructions to figure your deduction for a qualified business use of your home if you are electing to use the simplified method for that home.

Shared use (for simplified method only). If you share your home with someone else who uses the home for a separate business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. You must allocate the shared space between you and the other person in a reasonable manner.

Example. Taylor and Logan are roommates. Taylor uses 300 square feet of their home for a qualified business use. Logan uses 200 square feet of their home for a separate qualified business use. The qualified business uses share 100 square feet. In addition to the portion that they don’t share, Taylor and Logan can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. If divided evenly, Taylor could claim 250 square feet using the simplified method and Logan could claim 150 square feet.

Part-year use or area changes (for simplified method only). If your qualified business use was for a portion of the tax year (for example, a seasonal business, a business that begins during the year, or you moved during the year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. You figure the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12.