If you are self-employed and file Schedule C (Form 1040), complete and attach Form 8829 to your return.
If you file Schedule F (Form 1040), report your entire deduction for business use of the home (line 32 of the worksheet), up to the deduction limit discussed under Figuring the Deduction, on line 34 of Schedule F. Write "Business Use of Home" on the dotted line beside the entry.
Deductible mortgage interest.
If you file Schedule C (Form 1040), enter all your deductible mortgage interest on
line 10 of Form 8829. After you have figured the business part of the mortgage
interest on lines 12 and 13, subtract that amount from the total mortgage interest
on line 10. The remainder is deductible on Schedule A (Form 1040), line 10 or 11.
If the interest you deduct on Schedule A for your home mortgage is limited, enter the
excess on line 16 of Form 8829.
If you file Schedule F (Form 1040), include the business part of your deductible home mortgage interest with your total business use of the home expenses on line 34. You can use the worksheet on page 24 to figure the deductible part of mortgage interest. Enter the nonbusiness part of the deductible mortgage interest on Schedule A, line 10 or 11.
To determine if the limits on qualified home mortgage interest apply to you, see the instructions for Schedule A or Publication 936.
Real estate taxes.
If you file Schedule C (Form 1040), enter all your deductible real estate taxes on line 11
of Form 8829. After you have figured the business part of your taxes on lines 12 and 13,
subtract that amount from your total real estate taxes on line 11. The remainder
is deductible on Schedule A, line 6.
If you file Schedule F (Form 1040), include the business part of real estate taxes with your total business use of the home expenses on line 34. Enter the nonbusiness part of your real estate taxes on line 6 of Schedule A.
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If you itemize your deductions, be sure to claim only the personal part of your deductible mortgage interest and real estate taxes on Schedule A (Form 1040). Do not deduct any of the business part on Schedule A. For example, if your business percentage on line 7 of Form 8829 (pdf) or line 3 of the worksheet is 30%, you can claim only 70% of your deductible mortgage interest and real estate taxes as personal expenses on Schedule A. |
Casualty losses.
If you are using Form 8829, refer to the specific instructions for lines 9 and 27 and enter
the amount from line 33 on line 27 of Form 4684, Section B. Write "See Form 8829" above line 27.
If you file Schedule F (Form 1040), enter the business part of casualty losses (line 31 of the worksheet) on line 27 of Form 4684, Section B. Write "See attached statement" above line 27.
Other expenses.
If you file Schedule C (Form 1040), report the other home expenses that would not be allowable
if you did not use your home for business (insurance, maintenance, utilities, depreciation, etc.)
on the appropriate lines of your Form 8829. If you rent rather than own your home, include
the rent you paid on line 20. If these expenses exceed the deduction limit, carry the excess
over to next year. The carryover will be subject to next year's deduction limit.
If you file Schedule F (Form 1040), include your otherwise nondeductible expenses (insurance, maintenance, utilities, depreciation, etc.) with your total business use of the home expenses on line 34 of Schedule F. If these expenses exceed the deduction limit, carry the excess over to the next year. The carryover will be subject to next year's deduction limit.
Business expenses not for the use of your home.
Deduct in full your business expenses that are not for the use of your home itself (dues,
salaries, supplies, certain telephone expenses, etc.) on the appropriate lines of Schedule
C (Form 1040) or Schedule F (Form 1040). These expenses are not for the use of your home,
so they are not subject to the deduction limit for business use of the home expenses.
Self-Employed Persons
Employees
Partners
Information courtesy of the Internal Revenue Service.
