IRS Publication 587, Business Use of Your Home

Contents

Important Changes for 2003

Important Changes for 2004

Important Reminder

Introduction

Useful Items

Qualifying for a Deduction

Exclusive Use
Regular Use
Trade or Business Use
Principal Place of Business
Place To Meet Patients, Clients, or Customers
Separate Structure

Figuring the Deduction

Business Percentage
Part-Year Use
Deduction Limit

Deducting Expenses

Types of Expenses
Examples of Expenses

Depreciating Your Home

Permanent Improvements
Adjusting for Depreciation Deducted in Earlier Years
Figuring the Depreciation Deduction for the Current Year

Daycare Facility

Figure B - Part I of Form 8829
Standard Meal and Snack Rates

Sale or Exchange of Your Home

Business Use of Your Home

Business Furniture and Equipment

Listed Property
Property Bought for Business Use
Personal Property Converted to Business Use

Recordkeeping

Where To Deduct

Self-Employed Persons
Employees
Partners

Tax Forms Example

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

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

How to Get Tax Help

Exhibit A, Family Daycare Provider Meal and Snack Log

Index

 

Information courtesy of the Internal Revenue Service.