Expenses for business use of your home

• Author: Nicholas L. Bourdeau
• Pages: 157-180

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Chapter 11

Expenses for Business Use of Your Home

TABLE OF CONTENTS

§11:00 THEORY

§11:10 LINE BY LINE

§11:10.1 Line 1 Area used regularly and exclusively for business, regularly for day care, or for storage of

inventory or product samples (see instructions); Line 2 Total area of home; Line 3 Divide line 1

by line 2. Enter the result as a percentage

§11:10.2 Line 4 Multiply days used for day care during year by hours used per day; Line 5 Total hours

available for use during the year (see instructions); Line 6 Divide line 4 by line 5. Enter the

result as a decimal amount

§11:10.3 Line 7 Business percentage for day-care facilities not used exclusively for business, multiply

line 6 by line 3 (enter the result as a percentage). All others, enter the amount from line 3

§11:10.4 Line 8 Enter the amount from Schedule C, line 29, plus any net gain or (loss) derived from the

business use of your home and shown on Schedule D or Form 4797

§11:10.5 Line 9 Casualty Losses (see instructions)

§11:10.6 Line 10 Deductible Mortgage Interest (see instructions)

§11:10.7 Line 11 Real Estate Taxes (see instructions)

§11:10.8 Line 12 Add Lines 9, 10, and 11

§11:10.9 Line 13 Multiply Line 12, Column (b) by Line 7

§11:10.10 Line 14 Add Line 12, Column (a) and Line 13

§11:10.11 Line 15 Subtract Line 14 From Line 8. If Zero or Less, Enter -0-

§11:10.12 Line 16 Excess Mortgage Interest (see instructions)

§11:10.13 Line 17 Insurance

§11:10.14 Line 18 Rent

§11:10.15 Line 19 Repairs and Maintenance

§11:10.16 Line 20 Utilities

§11:10.17 Line 21 Other Expenses (see instructions)

§11:10.18 Line 22 Add Lines 16 Through 21

§11:10.19 Line 23 Multiply Line 22, Column (b) by Line 7

§11:10.20 Line 24 Carryover of Operating Expenses From 2011 Form 8829, Line 42

§11:10.21 Line 25 Add Line 22 in Column (a), Line 23, and Line 24

§11:10.22 Line 26 Allowable Operating Expenses; Enter the Smaller of Line 15 or Line 25

§11:10.23 Line 27 Limit of Excess Casualty Losses and Depreciation; Subtract Line 26 From Line 15

§11:10.24 Line 28 Excess Casualty Losses (see instructions)

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The Determination of Income for Child Support 11-2 The Determination of Income for Child Support 11-2

QUICK TAKE

Parents may deduct from income the costs associated with performing business activities

in their homes. The fact that both business and personal activities are performed at the same

location presents allocation problems for investigators.

WHAT YOU SEEK

Expenses for Business Use of Your Home (Form 8829)

RESOURCES

Internal Revenue Service instructions for:

Expenses for Business Use of Your Home (Form 8829)

§11:10.25 Line 29 Depreciation of Your Home From Part III Below

§11:10.26 Line 30 Carryover of Excess Casualty Losses and Depreciation From 2011 Form 8829, Line 43

§11:10.27 Line 31 Add Lines 28 Through 30

§11:10.28 Line 32 Allowable Excess Casualty Losses and Depreciation; Enter the Smaller of Line 27 or

Line 31

§11:10.29 Line 33 Add Lines 14, 26, and 32

§11:10.30 Line 34 Casualty Loss Portion, if Any, From Lines 14 and 32; Carry Amount to Form 4684,

Section B

§11:10.31 Line 35 Allowable Expenses for Business Use of Your Home; Subtract Line 34 From Line 33;

Enter Here and on Schedule C, Line 31

§11:10.32 Line 36 Enter the Smaller of Your Home’s Adjusted Basis or Its Fair Market Value (see

instructions)

§11:10.33 Line 37 Value of Land Included on Line 35

§11:10.34 Line 38 Basis of Building; Subtract Line 37 From Line 36

§11:10.35 Line 39 Business Basis of Building; Multiply Line 38 by Line 7

§11:10.36 Line 40 Depreciation Percentage (see instructions)

§11:10.37 Line 41 Depreciation Allowable (see instructions); Multiply Line 39 by 40; Enter Here and on

Line 29 Above

§11:10.38 Line 42 Operating Expenses; Subtract Line 26 From Line 25; If Less Than Zero, Enter -0-

§11:10.39 Line 43 Excess Casualty Losses and Depreciation; Subtract Line 32 From Line 31; If Less Than

Zero, Enter -0-

§11:20 BATTLE LINES

§11:30 THE INVESTIGATION

FORMS

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