Why am I receiving Reject SC-F1040-015-01 on an individual return that contains an 8829 with Safe Harbor?
The taxpayer sold a home and purchased another one during the year while running a Schedule C business using an office in each of the homes. The Safe Harbor method was used to compute expenses for one home, and then for the other, the expenses were figured on Form 8829, however, the return rejected.
You will have to either:
- paper file the return, or
- compute expenses for both home offices on Form 8829.
In an e-filed return, you cannot include home office expenses on the same Schedule C from two homes if you use the safe harbor method for one of them.
If Schedule C (Form 1040), Line 30a 'TotalAreaOfHomeCnt' and Line 30b 'HomeBusinessUseSquareFeetCnt' both have a non-zero value, then Line 30 'HomeBusinessExpenseAmt' must not be greater than (1500 plus the sum of all Form 8829, Line 35 'AllowableHomeBusExpnssSchCAmt').