Home Office & Vehicle: Home Office & Vehicle Expenses
Quick answer
Under IRC §280A, a home office qualifies only if part of the home is used regularly and exclusively for business. Taxpayers choose the simplified per-square-foot method or actual expenses on Form 8829. Vehicle costs use the standard mileage rate or actual expenses, with limits on switching methods, and commuting miles are never deductible.
Home Office & Vehicle Expenses is tested on EA Exam Part 2 (Individual Taxpayer Issues). Primary IRS reference: IRS Publication 587.
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About this EA exam topic
Home-office and vehicle-expense questions for the self-employed test the deduction methods and substantiation. The home office must be used regularly and exclusively for business; vehicle expenses use either the standard mileage rate or actual costs.
The EA exam tests the simplified vs. actual home-office methods and the standard-mileage vs. actual-expense choice, including the limits on switching.
What you'll be tested on
- Regular-and-exclusive-use test for the home office
- Simplified vs. actual home-office methods
- Standard mileage rate vs. actual vehicle expenses
- Recordkeeping and commuting exclusion
How to prepare
- Confirm regular AND exclusive use before any home-office deduction.
- Remember commuting miles never count.
- Know the restriction on switching from actual to standard mileage.
Practice questions for Home Office & Vehicle Expenses
What this topic covers
Home Office & Vehicle Expenses appears in Part 2: Business Taxation within the Individual Taxpayer Issues domain. VantageEA practice questions focus on how home office & vehicle rules are applied in realistic EA exam fact patterns.
What candidates practice
Candidates practice identifying tested facts, choosing the best multiple-choice answer, and reviewing explanations tied to IRS Publication 587, IRS Form 8829, IRC §280A. This topic supports timed 100-question PSI-style mock tests and shorter topic review sessions.
Related practice-question themes include home-office, vehicle-expenses, form-8829, standard-mileage.
Topic overview
Official IRS sources
Related keywords
Frequently asked questions
What are the home-office methods?
The simplified (rate-per-square-foot) method or the actual-expense method; the office must be used regularly and exclusively for business.
Which part?
Part 2 (Businesses).
Reference?
IRS Publications 587 and 463.
Continue studying
More Individual Taxpayer Issues topics from Part 2
Sole Proprietorship: Sole Proprietorship / Schedule C
Business Entities
Business Deductions: Business Deductions (Travel, Meals, Home Office)
Business Income & Deductions
MACRS Depreciation: Property Classes & Recovery Periods
Business Income & Deductions
Estimated Tax: Estimated Tax for Self-Employed
Individual Taxpayer Issues
Health Insurance: Self-Employed Health Insurance Deduction
Individual Taxpayer Issues
QBI Deduction: QBI Deduction (Section 199A)
Individual Taxpayer Issues
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