IRS Publication 587, Worksheet to Figure the Deductions for Business Use of Your Home

Use this worksheet if you file Schedule F (Form 1040) or you are an employee or a partner.

Part 1 - Part of Your Home Used for Business:
1) Area of home used for business  
2) Total area of home  
3) Percentage of home used for business (divide line 1 by line 2 and show result as percentage) %
Part 2 - Figure Your Allowable Deduction
4) Gross income from business (see instructions)  
  (a)
Direct Expenses
(b)
Indirect Expenses
 
5) Casualty losses    
6) Deductible mortgage interest    
7) Real estate taxes    
8) Total of lines 5 through 7    
9) Multiply line 8, column (b), by line 3  
10) Add line 8, column (a), and line 9  
11) Business expenses not from business use of home (see instructions)  
12) Add lines 10 and 11  
13) Deduction limit. Subtract line 12 from line 4  
14) Excess mortgage interest    
15) Insurance    
16) Repairs and maintenance    
17) Utilities    
18) Other expenses    
19) Add lines 14 through 18    
20) Multiply line 19, column (b) by line 3  
21) Carryover of operating expenses from prior year (see instructions)  
22) Add line 19, column (a), line 20, and line 21  
23) Allowable operating expenses. Enter the smaller of line 13 or line 22  
24) Limit on excess casualty losses and depreciation. Subtract line 23 from line 13  
25) Excess casualty losses (see instructions)  
26) Depreciation of your home from line 38 below  
27) Carryover of excess casualty losses and depreciation from prior year (see instructions)  
28) Add lines 25 through 27  
29) Allowable excess casualty losses and depreciation. Enter the smaller of line 24 or line 28  
30) Add lines 10, 23, and 29  
31) Casualty losses included on lines 10 and 29 (see instructions)  
32) Allowable expenses for business use of your home. (Subtract line 31 from line 30.) See instructions for where to enter on your return  
Part 3 - Depreciation of Your Home
33) Smaller of adjusted basis or fair market value of home (see instructions)  
34) Basis of land  
35) Basis of building (subtract line 34 from line 33)  
36) Business basis of building (multiply line 35 by line 3)  
37) Depreciation percentage (from applicable table or method) %
38) Depreciation allowable (multiply line 36 by line 37)  
Part 4 - Carryover of Unallowed Expenses to Next Year
39) Operating expenses. Subtract line 23 from line 22. If less than zero, enter -0-  
40) Excess casualty losses and depreciation. Subtract line 29 from line 28. If less than zero, enter -0-  

 

Information courtesy of the Internal Revenue Service.