This is the first year John used his home for business, so he must figure the depreciation on line 19i. On line 19i, column (c), he enters $11,000, the depreciable basis of the business part of his home. He began using his home for business in January. (For a discussion on how he figures his depreciation deduction, see Step 3 under Form 8829, Part II.) He enters $271 in column (g).
Form 4562 Example
Form 4562, Part I, lines 1-13
Form 4562, Part III, line 19c
Form 4562, Part III, line 19i
Form 4562, Part IV, line 22
Schedule C Example
Schedule C, Line 13
Schedule C, Line 16b
Schedule C, Line 25
Schedule C, Lines 28-30
Form 8829 Example
Form 8829, Part II, Step 1
Form 8829, Part II, Step 2
Form 8829, Part II, Step 3
Form 8829, Part II, Step 4
Information courtesy of the Internal Revenue Service.
