You do not have to use a particular method of recordkeeping, but you must keep records that provide the information needed to figure your deductions for the business use of your home. You should keep canceled checks, receipts, and other evidence of expenses you paid.
Your records must show the following information.
- The part of your home you use for business.
- That you use part of your home exclusively and regularly for business as either your principal place of business or as the place where you meet or deal with clients or customers in the normal course of your business. (However, see the earlier discussion, Exceptions to Exclusive Use, under Qualifying for a Deduction.)
- The depreciation and expenses for the business part.
You must keep your records for as long as they are important for any tax law. This is usually the later of the following dates.
- 3 years from the return due date or the date filed.
- 2 years after the tax was paid.
Keep records to prove your home's depreciable basis. This includes records of when and how you acquired your home, your original purchase price, any improvements to your home, and any depreciation you are allowed because you maintained an office in your home. You can keep copies of Forms 8829 or the Publication 587 worksheets as records of depreciation.
For more information on recordkeeping, see Publication 583.