Figure your depreciation deduction on lines 33 through 38.
On line 33, enter the smaller of the adjusted basis or the fair market value of the property at the time you first used it for business. Do not adjust this amount for changes in basis or value after that date.
Allocate the basis between the land and the building on lines 34 and 35. You cannot depreciate any part of the land.
On line 37, enter the correct percentage for the current year from the tables in Publication 946. Multiply this percentage by the business basis to get the depreciation deduction. Enter this figure on lines 38 and 26.
Complete and attach Form 4562 (pdf) to your return if this is the first year you used your home, or an improvement or addition to your home, in business.
Worksheet to Figure the Deductions for Business Use of Your Home
Instructions for the Worksheet
Part 1 - Part of Your Home Used for Business
Part 2 - Figure Your Allowable Deduction
Part 3 - Depreciation of Your Home
Part 4 - Carryover of Unallowed Expenses to Next Year
Information courtesy of the Internal Revenue Service.
