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            Department of the Treasury                        Contents
            Internal Revenue Service
                                                              What’s New    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1
                                                              Future Developments . . . . . . . . . . . . . . . . . . . . . . .          1
Publication 587
Cat. No. 15154T                                               Reminders    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
                                                              Introduction  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2
                                                              Qualifying for a Deduction . . . . . . . . . . . . . . . . . . .           2
Business Use 
                                                              Exclusive Use         . . . . . . . . . . . . . . . . . . . . . . . . . .  3
                                                              Regular Use . . . . . . . . . . . . . . . . . . . . . . . . . . . .        3
of Your Home                                                  Trade or Business Use             . . . . . . . . . . . . . . . . . . . .  3
                                                              Principal Place of Business . . . . . . . . . . . . . . . . .              3
(Including Use by                                             Place To Meet Patients, Clients, or 
                                                                    Customers . . . . . . . . . . . . . . . . . . . . . . . . . . .      5
Daycare Providers)                                            Separate Structure . . . . . . . . . . . . . . . . . . . . . . .           6
                                                              Figuring the Deduction        . . . . . . . . . . . . . . . . . . . . . .  6
For use in preparing
                                                              Using Actual Expenses . . . . . . . . . . . . . . . . . . . .              6
                                                              Using the Simplified Method               . . . . . . . . . . . . . . .    10
2022 Returns
                                                              Daycare Facility    . . . . . . . . . . . . . . . . . . . . . . . . . .    12
                                                              Sale or Exchange of Your Home                 . . . . . . . . . . . . .    14
                                                              Business Furniture and Equipment                  . . . . . . . . . . .    16
                                                              Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . .        18
                                                              Where To Deduct       . . . . . . . . . . . . . . . . . . . . . . . . .    18
                                                              Self-Employed Persons             . . . . . . . . . . . . . . . . . . .    18
                                                              Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       19
                                                              Worksheet To Figure the Deduction for 
                                                              Business Use of Your Home                   . . . . . . . . . . . . . .    20
                                                              Worksheets To Figure the Deduction for 
                                                              Business Use of Your Home (Simplified 
                                                              Method)       . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    23
                                                              How To Get Tax Help         . . . . . . . . . . . . . . . . . . . . . .    27
                                                              Exhibit A. Family Daycare Provider Meal and 
                                                              Snack Log         . . . . . . . . . . . . . . . . . . . . . . . . . . .    32
                                                              Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  33

                                                              What’s New
                                                              Mortgage  insurance  premiums.                  The  itemized  deduc-
                                                              tion  for  mortgage  insurance  premiums  has  expired.  You 
                                                              can no longer claim the deduction for 2022.

                                                              Future Developments
                                                              For the latest information about developments related to 
                                                              Pub.  587,  such  as  legislation  enacted  after  it  was 
Get forms and other information faster and easier at:         published, go to IRS.gov/Pub587.
• IRS.gov (English)         • IRS.gov/Korean (한국어) 
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) 
• IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt) 

Feb 15, 2023

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If you need information on deductions for renting out
your property, see Pub. 527, Residential Rental Property
Reminders
(Including Rental of Vacation Homes).
Simplified method for business use of home deduc-
tion. The IRS provides a simplified method to figure your Comments and suggestions. We welcome your com-
expenses for business use of your home. For more infor- ments about this publication and suggestions for future
mation, see Using the Simplified Method under Figuring editions.
the Deduction, later. You can send us comments through IRS.gov/
FormComments. Or, you can write to the Internal Reve-
Photographs of missing children. The Internal Reve- nue Service, Tax Forms and Publications, 1111 Constitu-
nue Service is a proud partner with the National Center for tion Ave. NW, IR-6526, Washington, DC 20224.
Missing & Exploited Children® (NCMEC). Photographs of Although we can’t respond individually to each com-
missing children selected by the Center may appear in ment received, we do appreciate your feedback and will
this publication on pages that would otherwise be blank. consider your comments and suggestions as we revise
You can help bring these children home by looking at the our tax forms, instructions, and publications. Don’t send
photographs and calling 800-THE-LOST (800-843-5678) tax questions, tax returns, or payments to the above ad-
if you recognize a child. dress.
Getting answers to your tax questions. If you have
a tax question not answered by this publication or the How
Introduction To Get Tax Help section at the end of this publication, go
to the IRS Interactive Tax Assistant page at IRS.gov/
The purpose of this publication is to provide information Help/ITA where you can find topics by using the search
on figuring and claiming the deduction for business use of feature or viewing the categories listed.
your home. The term “home” includes a house, apartment,
condominium, mobile home, boat, or similar property Getting tax forms, instructions, and publications.
which provides basic living accommodations. It also in- Go to IRS.gov/Forms to download current and prior-year
cludes structures on the property, such as an unattached forms, instructions, and publications.
garage, studio, barn, or greenhouse. However, it does not
Ordering tax forms, instructions, and publications.
include any part of your property used exclusively as a ho-
Go to IRS.gov/OrderForms to order current forms, instruc-
tel, motel, inn, or similar establishment.
tions, and publications; call 800-829-3676 to order
Qualifying for a Deduction gives the requirements for
prior-year forms and instructions. The IRS will process
qualifying to deduct expenses for the business use of your
your order for forms and publications as soon as possible.
home (including special rules for storing inventory or prod-
Don’t resubmit requests you’ve already sent us. You can
uct samples). For special rules that apply to daycare pro-
get forms and publications faster online.
viders, see Daycare Facility.
After you determine that you qualify for the deduction,
Figuring the Deduction explains the expenses you can de- Useful Items
duct using either your actual expenses or the simplified You may want to see:
method. The simplified method is an alternative to calcu-
lating and substantiating actual expenses. Publication
Where To Deduct explains where a self-employed per- 523 523 Selling Your Home
son or partner will report the deduction. 551 551 Basis of Assets
This publication also includes information on the follow-
ing. 583 583 Starting a Business and Keeping Records
• Selling a home that was used partly for business. 946 946 How To Depreciate Property

• Deducting expenses for furniture and equipment used Form (and Instructions)
in your business. Schedule C (Form 1040) Schedule C (Form 1040) Profit or Loss From
• Records you should keep. Business
Finally, this publication contains worksheets to help you 4562 4562 Depreciation and Amortization
figure the amount of your deduction if you use your home 8829 8829 Expenses for Business Use of Your Home
in your farming business and you are filing Schedule F
(Form 1040) or you are a partner and the use of your
home resulted in unreimbursed ordinary and necessary
expenses that are trade or business expenses under sec- Qualifying for a Deduction
tion 162 and that you are required to pay under the part-
nership agreement. If you used your home for business Generally, you cannot deduct items related to your home,
and you are filing Schedule C (Form 1040), you will use such as mortgage interest, real estate taxes, utilities,
either Form 8829 or the Simplified Method Worksheet in maintenance, rent, depreciation, or property insurance, as
your Instructions for Schedule C. business expenses. However, you may be able to deduct
The rules in this publication apply to individuals. expenses related to the business use of part of your home

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if you meet specific requirements. Even then, the deducti- • You keep the inventory or product samples in your
ble amount of these types of expenses may be limited. home for use in your trade or business.
Use this section and Figure A to decide if you can deduct
• Your home is the only fixed location of your trade or
expenses for the business use of your home.
business.
To qualify to deduct expenses for business use of your • You use the storage space on a regular basis.
home, you must use part of your home:
• The space you use is a separately identifiable space
• Exclusively and regularly as your principal place of suitable for storage.
business (see Principal Place of Business, later);
Example. Your home is the only fixed location of your
• Exclusively and regularly as a place where you meet
business of selling mechanics' tools at retail. You regularly
or deal with patients, clients, or customers in the nor-
use half of your basement for storage of inventory and
mal course of your trade or business;
product samples. You sometimes use the area for per-
• In the case of a separate structure which is not at- sonal purposes. The expenses for the storage space are
tached to your home, in connection with your trade or deductible even though you do not use this part of your
business; basement exclusively for business.
• On a regular basis for certain storage use (see Stor-
age of inventory or product samples, later); Regular Use
• For rental use (see Pub. 527); or
To qualify under the regular use test, you must use a spe-
• As a daycare facility (see Daycare Facility, later). cific area of your home for business on a regular basis. In-
cidental or occasional business use is not regular use.
Exclusive Use You must consider all facts and circumstances in deter-
mining whether your use is on a regular basis.
To qualify under the exclusive use test, you must use a
specific area of your home only for your trade or business. Trade or Business Use
The area used for business can be a room or other sepa-
rately identifiable space. The space does not need to be To qualify under the trade-or-business-use test, you must
marked off by a permanent partition. use part of your home in connection with a trade or busi-
ness. If you use your home for a profit-seeking activity that
You do not meet the requirements of the exclusive use is not a trade or business, you cannot take a deduction for
test if you use the area in question both for business and its business use.
for personal purposes.
Example. You use part of your home exclusively and
Example. You are an attorney and use a den in your regularly to read financial periodicals and reports, clip
home to write legal briefs and prepare clients' tax returns. bond coupons, and carry out similar activities related to
Your family also uses the den for recreation. The den is your own investments. You do not make investments as a
not used exclusively in your trade or business, so you broker or dealer. So, your activities are not part of a trade
cannot claim a deduction for the business use of the den. or business and you cannot take a deduction for the busi-
ness use of your home.
Exceptions to Exclusive Use
Principal Place of Business
You do not have to meet the exclusive use test if either of
the following applies.
You can have more than one business location, including
• You use the part of your home in question for the stor- your home, for a single trade or business. To qualify to de-
age of inventory or product samples (discussed next). duct the expenses for the business use of your home un-
• You use the part of your home in question as a day- der the principal place of business test, your home must
care facility (discussed later under Daycare Facility). be your principal place of business for that trade or busi-
ness. To determine whether your home is your principal
Note. With the exception of these two uses, any por- place of business, you must consider:
tion of the home used for business purposes must meet • The relative importance of the activities performed at
the exclusive use test. each place where you conduct business, and
Storage of inventory or product samples. If you use • The amount of time spent at each place where you
part of your home for storage of inventory or product sam- conduct business.
ples, you can deduct expenses for the business use of
your home without meeting the exclusive use test. How- Your home office will qualify as your principal place of
ever, you must meet all the following tests. business if you meet the following requirements.
• You sell products at wholesale or retail as your trade • You use it exclusively and regularly for administrative
or business. or management activities of your trade or business.

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Figure A. Can You Deduct Business Use of the Home Expenses? Do not use this chart if you use your home for the storage of
inventory or product samples, or to operate a daycare facility. See Exceptions to Exclusive Use, earlier, and Daycare Facility, later.

Start Here:
Is part of your home
No used in connection with
a trade or business?
Yes

Yes Are you using the part of
your home as an employee?
No

No Is the use regular
and exclusive?
Yes

Is it your principal place Yes
of business?
No

Do you meet patients,
clients, or customers in Yes
your home?
No

No Is it a separate Yes
No deduction structure? Deduction allowed

• You have no other fixed location where you conduct you or others will not disqualify your home office from be-
substantial administrative or management activities of ing your principal place of business.
your trade or business.
• You have others conduct your administrative or man-
If, after considering your business locations, your home agement activities at locations other than your home.
cannot be identified as your principal place of business, (For example, another company does your billing from
you cannot deduct home office expenses. However, see its place of business.)
the later discussions under Place To Meet Patients, Cli- • You conduct administrative or management activities
ents, or Customers and Separate Structure for other ways at places that are not fixed locations of your business,
to qualify to deduct home office expenses. such as in a car or a hotel room.
Administrative or management activities. There are • You occasionally conduct minimal administrative or
many activities that are administrative or managerial in na- management activities at a fixed location outside your
ture. The following are a few examples. home.
• Billing customers, clients, or patients. • You conduct substantial nonadministrative or nonma-
nagement business activities at a fixed location out-
• Keeping books and records.
side your home. (For example, you meet with or pro-
• Ordering supplies. vide services to customers, clients, or patients at a
• Setting up appointments. fixed location of the business outside your home.)
• Forwarding orders or writing reports. • You have suitable space to conduct administrative or
management activities outside your home, but choose
Administrative or management activities performed to use your home office for those activities instead.
at other locations. The following activities performed by
Example 1. A is a self-employed plumber. Most of A's
time is spent at customers' homes and offices installing
and repairing plumbing. A has a small office at home that

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is used exclusively and regularly for the administrative or • Reading medical journals and books.
management activities of the plumbing business, such as C’s home office qualifies as their principal place of
phoning customers, ordering supplies, and keeping the business for deducting expenses for its use. C conducts
books. administrative or management activities for their business
A writes up estimates and records of work completed at as an anesthesiologist there and at no other fixed location
the customers' premises. A does not conduct any sub- where substantial administrative or management activities
stantial administrative or management activities at any for this business are conducted. C’s choice to use their
fixed location other than their home office. A does not do home office instead of the one provided by their hospital
direct billing. A uses a local bookkeeping service to bill does not disqualify their home office from being their prin-
their customers. cipal place of business. C’s performance of substantial
A's home office qualifies as their principal place of busi- nonadministrative or nonmanagement activities at fixed
ness for deducting expenses. A uses the home office for locations outside their home also does not disqualify their
the administrative or managerial activities of the plumbing home office from being their principal place of business. C
business and has no other fixed location where these ad- meets all the qualifications, including principal place of
ministrative or managerial activities are conducted. A’s business, so the expenses (subject to certain limitations,
choice to have billing done by another company does not explained later) can be deducted for the business use of
disqualify the home office from being their principal place the home.
of business. A meets all the qualifications, including princi-
pal place of business, so the expenses (subject to certain
More Than One Trade or Business
limitations, explained later) can be deducted for the busi-
ness use of the home. The same home office can be the principal place of busi-
ness for two or more separate business activities.
Example 2. B is a self-employed sales representative
Whether your home office is the principal place of busi-
for several different product lines. B has an office in their
ness for more than one business activity must be deter-
home that they use exclusively and regularly to set up ap-
mined separately for each of your trade or business activi-
pointments and write up orders and other reports for the
ties. You must use the home office exclusively and
products B sells. B occasionally writes up orders and sets
regularly for one or more of the following purposes.
up appointments from their hotel room while away on
business overnight. • As the principal place of business for one or more of
B’s business is selling products to customers at various your trades or businesses.
locations throughout their assigned territory. To make As a place to meet or deal with patients, clients, or
•
these sales, B regularly visits customers to explain the customers in the normal course of one or more of your
available products and take orders. trades or businesses.
B's home office qualifies as their principal place of busi-
ness for deducting expenses for its use. B conducts ad- • If your home office is a separate structure, in connec-
ministrative or management activities there and they have tion with one or more of your trades or businesses.
no other fixed location where substantial administrative or
management activities are conducted. The fact that B You can use your home office for more than one trade
conducts some administrative or management activities in or business activity, but you cannot use it for any activities
a hotel room (not a fixed location) does not disqualify the that are not related to a trade or business.
home office from being their principal place of business. B
meets all the qualifications, including principal place of Place To Meet Patients, Clients, or
business, so the expenses (subject to certain limitations, Customers
explained later) can be deducted for the business use of
the home. If you meet or deal with patients, clients, or customers in
your home in the normal course of your business, even
Example 3. C is a self-employed anesthesiologist. C though you also carry on business at another location, you
spends the majority of their time administering anesthesia can deduct your expenses for the part of your home used
and postoperative care in three local hospitals. One of the exclusively and regularly for business if you meet both the
hospitals provides a small shared office where C could following tests.
conduct administrative or management activities.
C very rarely uses the office the hospital provides but • You physically meet with patients, clients, or custom-
instead uses a room at home that has been converted to ers on your premises.
an office. C uses this room exclusively and regularly to • Their use of your home is substantial and integral to
conduct all the following activities. the conduct of your business.
• Contacting patients, surgeons, and hospitals regard- Doctors, dentists, attorneys, and other professionals
ing scheduling. who maintain offices in their homes will generally meet
• Preparing for treatments and presentations. this requirement.
• Maintaining billing records and patient logs.
• Satisfying continuing medical education requirements.

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Using your home for occasional meetings and tele- you did not use your home for business purposes. For ex-
phone calls will not qualify you to deduct expenses for the ample, if you begin using part of your home for business
business use of your home. on July 1, and you meet all the tests from that date until
The part of your home you use exclusively and regu- the end of the year, consider only your expenses for the
larly to meet patients, clients, or customers does not have last half of the year in figuring your allowable deduction.

to be your principal place of business. Expenses related to tax-exempt income. Generally,
Example. D, a self-employed attorney, works 3 days you cannot deduct expenses that are related to tax-ex-
a week in their office, then works 2 days a week at home, empt allowances. However, if you receive a tax-exempt
in a home office used only for business. D regularly meets parsonage allowance or a tax-exempt military allowance,
clients there. The home office qualifies for a business de- your expenses for mortgage interest, and real estate taxes
duction because D meets clients there in the normal are deductible under the normal rules. No deduction is al-
course of their business. lowed for other expenses related to the tax-exempt allow-
ance.
If your housing is provided free of charge and the value
Separate Structure of the housing is tax exempt, you cannot deduct the rental
value of any portion of the housing.
You can deduct expenses for a separate free-standing
structure, such as a studio, workshop, garage, or barn, if
you use it exclusively and regularly for your business. The Actual Expenses
structure does not have to be your principal place of busi-
ness or a place where you meet patients, clients, or cus- You must divide the expenses of operating your home be-
tomers. tween personal and business use. The part of a home op-
erating expense you can use to figure your deduction de-
Example. E operates a floral shop in town. E grows pends on both of the following.
the plants for their shop in a greenhouse located at home. • Whether the expense is direct, indirect, or unrelated.
E uses the greenhouse exclusively and regularly for their
business, so that E can deduct the expenses for its use • The percentage of your home used for business.
(subject to certain limitations, described later).
Table 1 describes the types of expenses you may have
and the extent to which they are deductible.

Figuring the Deduction Table 1. Types of Expenses
After you determine that you meet the tests under Qualify- Expense Description Deductibility
ing for a Deduction, you can begin to figure how much you Direct Expenses only for Deductible in full.*
can deduct. When figuring the amount you can deduct for the business part
the business use of your home, you will use either your of your home.
actual expenses or a simplified method. Examples: Exception:
Painting or repairs May be only partially
Electing to use the simplified method. The simplified only in the area deductible in a daycare
method is an alternative to the calculation, allocation, and used for business. facility. See Daycare
substantiation of actual expenses. You choose whether or Facility, later.
not to figure your deduction using the simplified method Indirect Expenses for Deductible based on the
each tax year. See Using the Simplified Method, later. keeping up percentage of your
and running your home used for business.*
entire home.
Using Actual Expenses Examples:
Insurance,
If you do not or cannot elect to use the simplified method utilities, and
for a home, you will figure your deduction for that home general repairs.
using your actual expenses. You will also need to figure Unrelated Expenses only for Not deductible.
the percentage of your home used for business and the the parts of your
limit on the deduction. home not used
If you are a partner or you use your home in your farm- for business.
ing business and you file Schedule F (Form 1040), you Examples:
can use the Worksheet To Figure the Deduction for Busi- Lawn care or painting
a room not used
ness Use of Your Home, near the end of this publication, for business.
to help you figure your deduction. If you use your home in
a trade or business and you file Schedule C (Form 1040), *Subject to the deduction limit, discussed later.

you will use Form 8829 to figure your deduction. Form 8829 and the Worksheet To Figure the De-
duction for Business Use of Your Home have sep-
Part-year use. You cannot deduct expenses for the busi- TIP
arate columns for direct and indirect expenses.
ness use of your home incurred during any part of the year

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Certain expenses are deductible to the extent they Rent. If you rent the home you occupy and meet the re-
would have been deductible as an itemized deduction on quirements for business use of the home, you can deduct
your Schedule A or, if claiming the standard deduction, part of the rent you pay. To figure your deduction, multiply
would have increased your standard deduction had you your rent payments by the percentage of your home used
not used your home for business. If the expense is indi- for business.
rect, use the business percentage of these expenses to If you own your home, you cannot deduct the fair rental
figure how much to include in your total busi- value of your home. However, see Depreciating Your
ness-use-of-the-home deduction. If you are itemizing your Home, later.
deductions on Schedule A (Form 1040), these expenses
include the following. Repairs. The cost of repairs that relate to your business,
including labor (other than your own labor), is a deductible
• Real estate taxes. expense. For example, a furnace repair benefits the entire
• Home mortgage interest. home. If you use 10% of your home for business, you can
deduct 10% of the cost of the furnace repair.
• Casualty losses attributable to a federally declared
Repairs keep your home in good working order over its
disaster.
useful life. Examples of common repairs are patching
If you are claiming the standard deduction, these expen- walls and floors, painting, wallpapering, repairing roofs
ses only include net qualified disaster losses that increase and gutters, and mending leaks. However, repairs are
your standard deduction. sometimes treated as a permanent improvement and are
not deductible. See Permanent improvements, later, un-
See the Instructions for the Worksheet To Figure the der Depreciating Your Home.
Deduction for Business Use of Your Home, later in this
publication, or the Instructions for Form 8829 for more in- Security system. If you install a security system that pro-
formation about figuring and deducting the business part tects all the doors and windows in your home, you can de-
of these otherwise allowable expenses. For more informa- duct the business part of the expenses you incur to main-
tion about deducting real estate taxes, see Pub. 530, Tax tain and monitor the system. You can also take a
Information for Homeowners. For more information about depreciation deduction for the part of the cost of the se-
deducting home mortgage interest, see Pub. 936, Home curity system relating to the business use of your home.
Mortgage Interest Deduction. For more information about
deducting casualty losses, see Pub. 547, Casualties, Dis- Utilities and services. Expenses for utilities and serv-
asters, and Thefts. ices, such as electricity, gas, trash removal, and cleaning
services, are primarily personal expenses. However, if
Other expenses are deductible only if you use your you use part of your home for business, you can deduct
home for business. If the expense is indirect, use the busi- the business part of these expenses. Generally, the busi-
ness percentage of these expenses to figure how much to ness percentage for utilities is the same as the percentage
include in your total business-use-of-the-home deduction. of your home used for business.
These expenses generally include (but are not limited to)
the following. Telephone. The basic local telephone service charge,
including taxes, for the first telephone landline into your
• Casualty losses not attributable to a federally declared home is a nondeductible personal expense. However,
disaster. charges for business long-distance phone calls on that
• Depreciation (discussed under Depreciating Your line, as well as the cost of a second line into your home
Home, later). used exclusively for business, are deductible business ex-
penses. Do not include these expenses as a cost of using
• Insurance. your home for business. Deduct these charges separately
• Rent paid for the use of property you do not own but on the appropriate form or schedule. For example, if you
use in your trade or business. file Schedule C (Form 1040), deduct these expenses on
line 25, Utilities (instead of line 30, Expenses for business
• Repairs.
use of your home).
• Security system.
• Utilities and services. (But see Telephone, later, for Depreciating Your Home
different rules that apply to telephone expenses.)
If you own your home and qualify to deduct expenses for
Insurance. You can deduct the cost of insurance that its business use, you can claim a deduction for deprecia-
covers the business part of your home. However, if your tion. Depreciation is an allowance for the wear and tear on
insurance premium gives you coverage for a period that the part of your home used for business. You cannot de-
extends past the end of your tax year, you can deduct preciate the cost or value of the land. You recover its cost
only the business percentage of the part of the premium when you sell or otherwise dispose of the property.
that gives you coverage for your tax year. You can deduct
the business percentage of the part that applies to the fol-
lowing year in that year.

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Before you figure your depreciation deduction, you Fair market value defined. The fair market value of your
need to know the following information. home is the price at which the property would change
hands between a buyer and a seller, neither having to buy
• The month and year you started using your home for
or sell, and both having reasonable knowledge of all nec-
business.
essary facts. Sales of similar property, on or about the
• The adjusted basis and fair market value of your home date you begin using your home for business, may be
(excluding land) at the time you began using it for helpful in determining the property's fair market value.
business.
Figuring the depreciation deduction for the current
• The cost of any improvements before and after you
year. If you began using your home for business before
began using the property for business.
2022, continue to use the same depreciation method you
• The percentage of your home used for business. See used in past tax years. However, if you figured your de-
Business Percentage, later. duction for business use of the home using the simplified
method in a prior year, you will need to use the optional
Adjusted basis defined. The adjusted basis of your depreciation table for modified accelerated cost recovery
home is generally its cost, plus the cost of any permanent system (MACRS) property. See Pub. 946 for the optional
improvements you made to it, minus any casualty losses depreciation tables. For more information about the sim-
or depreciation deducted in earlier tax years. For a discus- plified method, see Revenue Procedure 2013-13,
sion of adjusted basis, see Pub. 551, Basis of Assets. 2013-06 I.R.B. 478, available at IRS.gov/irb/
Permanent improvements. A permanent improve- 2013-06_IRB#RP-2013-13.
ment increases the value of property, adds to its life, or If you began using your home for business for the first
gives it a new or different use. Examples of improvements time in 2022, depreciate the business part as nonresiden-
are replacing electric wiring or plumbing, adding a new tial real property under MACRS. Under MACRS, nonresi-
roof or addition, paneling, or remodeling. dential real property is depreciated using the straight line
You must carefully distinguish between repairs and im- method over 39 years. For more information on MACRS
provements. See Repairs, earlier, under Actual Expenses. and other methods of depreciation, see Pub. 946.
You must also keep accurate records of these expenses. To figure the depreciation deduction, you must first fig-
These records will help you decide whether an expense is ure the part of the cost of your home that can be depreci-
a deductible or a capital (added to the basis) expense. ated (depreciable basis). The depreciable basis is figured
However, if you make repairs as part of an extensive re- by multiplying the percentage of your home used for busi-
modeling or restoration of your home, the entire job is an ness by the smaller of the following.
improvement. • The adjusted basis of your home (excluding land) on
the date you began using your home for business.
Example. You buy an older home and fix up two
rooms as a beauty salon. You patch the plaster on the • The fair market value of your home (excluding land)
ceilings and walls, paint, repair the floor, install an outside on the date you began using your home for business.
door, and install new wiring, plumbing, and other equip- Depreciation table. If 2022 was the first year you
ment. Normally, the patching, painting, and floor work are used your home for business, you can figure your 2022
repairs and the other expenses are permanent improve- depreciation for the business part of your home by using
ments. However, because the work gives your property a the appropriate percentage from the following table.
new use, the entire remodeling job is a permanent im-
provement and its cost is added to the basis of the prop- Table 2. MACRS Percentage Table for
erty. You cannot deduct any portion of it as a repair ex-
39-Year Nonresidential Real
pense.
Property
Adjusting for depreciation deducted in earlier
years. Decrease the basis of your property by the depre- Month First Used for Business Percentage To Use
ciation you deducted, or could have deducted, on your tax 1 2.461%
returns under the method of depreciation you properly se- 2 2.247%
lected. If you deducted less depreciation than you could
3 2.033%
have under the method you selected, decrease the basis
by the amount you could have deducted under that 4 1.819%
method. If you did not deduct any depreciation, decrease 5 1.605%
the basis by the amount you could have deducted. 6 1.391%
If you deducted more depreciation than you should 7 1.177%
have, decrease your basis by the amount you should have 8 0.963%
deducted, plus the part of the excess depreciation you de-
9 0.749%
ducted that actually decreased your tax liability for any
year. 10 0.535%
If you deducted the incorrect amount of depreciation, 11 0.321%
see Pub. 946, How To Depreciate Property. 12 0.107%

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Multiply the depreciable basis of the business part of • Your business percentage is 20%.
your home by the percentage from the table for the first
month you use your home for business. See Pub. 946 for Example 2.
the percentages for the remaining tax years of the recov- • You use one room in your home for business.
ery period.
• Your home has 10 rooms, all about equal size.
Example. In May, F began to use one room at home • Your office is 10% (1 ÷ 10) of the total area of your
exclusively and regularly to meet clients. This room is 8% home.
of the square footage of the home. F bought their home in
2008 for $125,000. F determined from the property tax re- • Your business percentage is 10%.
cords that the adjusted basis in the house (exclusive of Use lines 1–7 of Form 8829, or lines 1–3 on the
land) is $115,000. In May, the house had a fair market TIP Worksheet To Figure the Deduction for Business
value of $165,000. F multiplies the adjusted basis of Use of Your Home (near the end of this publica-
$115,000 (which is less than the fair market value) by 8%. tion) to figure your business percentage.
The result is $9,200, the depreciable basis for the busi-
ness part of the house.
F files their return based on the calendar year. May is Deduction Limit
the fifth month of this tax year. F multiplies the depreciable
basis of $9,200 by 1.605% (0.01605), the percentage If your gross income from the business use of your home
from the table for the fifth month. F’s depreciation deduc- equals or exceeds your total business expenses (includ-
tion is $147.66. ing depreciation), you can deduct all your business ex-
penses related to the use of your home.
Depreciating permanent improvements. Add the
costs of permanent improvements made before you be- If your gross income from the business use of your
gan using your home for business to the basis of your home is less than your total business expenses, your de-
property. Depreciate these costs as part of the cost of duction for certain expenses for the business use of your
your home, as explained earlier. The costs of improve- home is limited.
ments made after you begin using your home for business
(that affect the business part of your home, such as a new Your deduction of otherwise nondeductible expenses,
roof) are depreciated separately. Multiply the cost of the such as insurance, utilities, and depreciation of your home
improvement by the business-use percentage and depre- (with depreciation of your home taken last), that are allo-
ciate the result over the recovery period that would apply cable to the business, is limited to the gross income from
to your home if you began using it for business at the the business use of your home minus the sum of the fol-
same time as the improvement. For improvements made lowing.
this year, the recovery period is 39 years. For the percent- 1. The business part of expenses you could deduct even
age to use for the first year, see Table 2. For more infor- if you did not use your home for business (such as
mation on recovery periods, see Pub. 946. mortgage interest, real estate taxes, and casualty los-
ses attributable to a federally declared disaster if you
Business Percentage itemize deductions on Schedule A (Form 1040) or net
qualified disaster losses if you claim the standard de-
To find the business percentage, compare the size of the
duction).
part of your home that you use for business to your whole
house. Use the resulting percentage to figure the business 2. The business expenses that relate to the business ac-
part of the expenses for operating your entire home. tivity in the home (for example, business phone, sup-
plies, and depreciation on equipment), but not to the
You can use any reasonable method to determine the use of the home itself.
business percentage. The following are two commonly
used methods for figuring the percentage. If you are self-employed, do not include in (2) above your
deduction for one-half of your self-employment tax.
1. Divide the area (length multiplied by the width) used
for business by the total area of your home. Carryover of unallowed expenses. If your business ex-
penses related to the home are greater than the current
2. If the rooms in your home are all about the same size,
year's limit, you can carry over the excess to the next year
you can divide the number of rooms used for busi-
in which you use actual expenses. They are subject to the
ness by the total number of rooms in your home.
deduction limit for that year, whether or not you live in the
Example 1. same home during that year.

• Your office is 240 square feet (12 feet × 20 feet). Figuring the deduction limit and carryover. If you are
a partner or you file Schedule F (Form 1040), use the
• Your home is 1,200 square feet.
Worksheet To Figure the Deduction for Business Use of
• Your office is 20% (240 ÷ 1,200) of the total area of Your Home, near the end of this publication. If you file
your home. Schedule C (Form 1040), figure your deduction limit and
carryover on Form 8829.

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Example. You meet the requirements for deducting later, for information about figuring the amount of the de-
expenses for the business use of your home. You use duction.
20% of your home for business. You are itemizing your
For more information about the simplified method, see
deductions on Schedule A (Form 1040) and your home
Revenue Procedure 2013-13, 2013-06 I.R.B. 478, availa-
mortgage interest and total state and local taxes would
ble at IRS.gov/irb/2013-06_IRB#RP-2013-13.
not be limited on your Schedule A if you had not used your
home for business. In 2022, your business expenses and Actual expenses and depreciation of your home. If
the expenses for the business use of your home are de- you elect to use the simplified method, you cannot deduct
ducted from your gross income in the following order. any actual expenses for the business except for business
expenses that are not related to the use of the home. You
Gross income from business. . . . . . . . . . . . . . . . . . . $6,000 also cannot deduct any depreciation (including any addi-
Minus:
Deductible mortgage interest tional first-year depreciation) or section 179 expense for
and real estate taxes (20%) . . . . . . . . . . . . . . . . . 3,000 the portion of the home that is used for a qualified busi-
Business expenses not related to the use of your home ness use. The depreciation deduction allowable for that
(100%) (business phone, supplies, and depreciation on portion of the home is deemed to be zero for a year you
equipment). . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 use the simplified method. If you figure your deduction for
Deduction limit. . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 business use of the home using actual expenses in a sub-
Minus other expenses allocable to business use of home: sequent year, you will have to use the appropriate optional
Maintenance, insurance, and utilities (20%). . . . . . . . 800
Depreciation allowed (20%). . . . . . . . . . . . . . . . . 200 depreciation table for MACRS to figure your depreciation.
Other expenses up to the deduction limit. . . . . . . . . . . $1,000 More information. For more information about claim-
Depreciation carryover to 2023 ($1,600 − $200) ing depreciation in a subsequent year, see Revenue Pro-
(subject to deduction limit in 2023). . . . . . . . . . . . . . . $1,400
cedure 2013-13, 2013-06 I.R.B. 478, available at
You can deduct all of the business part of your deducti- IRS.gov/irb/2013-06_IRB#RP-2013-13. See Pub. 946 for
ble mortgage interest and real estate taxes ($3,000). You the optional depreciation tables.
can also deduct all of your business expenses not related Although you cannot deduct any depreciation or
to the use of your home ($2,000). Additionally, you can TIP section 179 expense for the portion of your home
deduct all of the business part of your expenses for main- used for a qualified business use, you may still
tenance, insurance, and utilities, because the total ($800) claim depreciation or the section 179 expense deduction
is less than the $1,000 deduction limit. Your deduction for on other assets used in the business (for example, furni-
depreciation for the business use of your home is limited ture and equipment).
to $200 ($1,000 minus $800) because of the deduction
limit. You can carry over the $1,400 balance and add it to Expenses deductible without regard to business use.
your depreciation for 2023, subject to your deduction limit When using the simplified method, treat as personal ex-
in 2023. penses your mortgage interest, real estate taxes, and
casualty losses. If you also rent part of your home, you
More than one place of business. If part of the gross
must still allocate these expenses between rental use and
income from your trade or business is from the business
personal use (for this purpose, personal use includes
use of part of your home and part is from a place other
business use reported using the simplified method).
than your home, you must determine the part of your
gross income from the business use of your home before No deduction of carryover of actual expenses. If you
you figure the deduction limit. In making this determina- used actual expenses to figure your deduction for busi-
tion, consider the time you spend at each location, the ness use of the home in a prior year and your deduction
business investment in each location, and any other rele- was limited, you cannot deduct the disallowed amount
vant facts and circumstances. carried over from the prior year during a year you figure
If your home office qualifies as your principal your deduction using the simplified method. Instead, you
TIP place of business, you can deduct your daily will continue to carry over the disallowed amount to the
transportation costs between your home and an- next year that you use actual expenses to figure your de-
other work location in the same trade or business. For duction.
more information on transportation costs, see Pub. 463,
Travel, Gift, and Car Expenses. Electing the Simplified Method

You choose whether or not to figure your deduction using
Using the Simplified Method the simplified method each tax year. Make the election for
a home by using the simplified method to figure the de-
The simplified method is an alternative to the calculation, duction for the qualified business use of that home on a
allocation, and substantiation of actual expenses. In most timely filed, original federal income tax return. An election
cases, you will figure your deduction by multiplying $5, the for a tax year, once made, is irrevocable. A change from
prescribed rate, by the area of your home used for a quali- using the simplified method in one year to actual expen-
fied business use. The area you use to figure your deduc- ses in a succeeding tax year, or vice versa, is not a
tion is limited to 300 square feet. See Simplified Amount,

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change in method of accounting and does not require the If you are a partner or you use your home in your farm-
consent of the Commissioner. ing business and file Schedule F (Form 1040), you can
use the Simplified Method Worksheet, near the end of this
Shared use. If you share your home with someone else publication, to help you figure your deduction. If you use
who also uses the home in a business that qualifies for your home in a trade or business and you file Schedule C
this deduction, each of you makes your own election. (Form 1040), you will use the Simplified Method Work-
sheet in your Instructions for Schedule C to figure your de-
More than one qualified business use. If you conduct
duction.
more than one business that qualifies for this deduction in
your home, your election to use the simplified method ap- Allowable area. In most cases, the allowable area is the
plies to all your qualified business uses of that home. smaller of the actual area (in square feet) of your home
used in conducting the business and 300 square feet.
More than one home. If you used more than one home
Your allowable area may be smaller if you conducted the
in your business during the year (for example, you moved
business as a qualified joint venture with your spouse, the
during the year), you can elect to use the simplified
area used by the business was shared with another quali-
method for only one of the homes. You must figure the de-
fied business use, you used the home for the business for
duction for any other home using actual expenses.
only part of the year, or the area used by the business
changed during the year. You can use the Area Adjust-
Simplified Amount ment Worksheet (for simplified method), near the end of
this publication, to help you figure your allowable area for
Your deduction for the qualified business use of a home is a qualified business use.
the sum of each amount you figure for a separate qualified
business use of your home. To figure your deduction for Area used by a qualified joint venture. If the quali-
the business use of a home using the simplified method, fied business use of the home is also a qualified joint ven-
you will need to know the following information for each ture, you and your spouse will figure the deduction for the
qualified business use of the home. business use separately. Split the actual area used in con-
ducting business between you and your spouse in the
• The allowable area of your home used in conducting
same manner you split your other tax attributes. Then,
the business. If you did not conduct the business for
each spouse will figure the allowable area separately. For
the entire year in the home or the area changed during
more information about qualified joint ventures, see Quali-
the year, you will need to know the allowable area you
fied Joint Venture in the Instructions for Schedule C.
used and the number of days you conducted the busi-
ness for each month. Shared use. If you share your home with someone
else who uses the home to conduct business that also
• The gross income from the business use of your
qualifies for this deduction, you may not include the same
home.
square feet to figure your deduction as the other person.
• The amount of the business expenses that are not re- You must allocate the shared space between you and the
lated to the use of your home. other person in a reasonable manner.
• If the qualified business use is for a daycare facility
Example. G and H are roommates. G uses 300
that uses space in your home on a regular (but not ex-
square feet of their home for a qualified business use. H
clusive) basis, you will need to know the percentage
uses 200 square feet of their home for a separate qualified
of time that part of your home is used for daycare.
business use. G and H both share 100 square feet for
To figure the amount you can deduct for qualified busi- their respective qualified businesses in their mutual home.
ness use of your home using the simplified method, follow In addition to the portion that they do not share, G and H
these three steps. can both claim 50 of the 100 square feet or divide the 100
square feet between them in any reasonable manner. If
1. Multiply the allowable area by $5 (or less than $5 if divided evenly, G could claim 250 square feet using the
the qualified business use is for a daycare that uses simplified method and H could claim 150 square feet.
space in your home on a regular, but not exclusive,
basis). See Allowable area and Space used regularly More than one qualified business use. If you con-
for daycare, later. duct more than one business qualifying for the deduction,
you are limited to a maximum of 300 square feet for all of
2. Subtract the expenses from the business that are not the businesses. Allocate the actual square footage used
related to the use of the home from the gross income (up to the maximum of 300 square feet) among your quali-
related to the business use of the home. If these ex- fied business uses in a reasonable manner. However, do
penses are greater than the gross income from the not allocate more square feet to a qualified business use
business use of the home, then you cannot take a de- than you actually use for that business.
duction for this business use of the home. See Gross
income limitation, later. Rental use. The simplified method does not apply to
rental use. A rental use that qualifies for the deduction
3. Take the smaller of the amounts from (1) and (2). This must be figured using actual expenses. If the rental use
is the amount you can deduct for this qualified busi- and a qualified business use share the same area, you will
ness use of your home using the simplified method.

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have to allocate the actual area used between the two income derived from the qualified business use of the
uses. You cannot use the same area to figure a deduction home reduced by the business deductions that are unrela-
for the qualified business use as you are using to figure ted to the use of your home. If the business deductions
the deduction for the rental use. that are unrelated to the use of your home are greater
than the gross income derived from the qualified business
Part-year use or area changes (for simplified
use of your home, then you cannot take a deduction for
method only). If your qualified business use was for a
this qualified business use of your home.
portion of the year (for example, a seasonal business, a
business that begins during the year, or you moved during Business expenses not related to use of the home.
the year) or you changed the square footage of your quali- These expenses relate to the business activity in the
fied business use, your deduction is limited to the average home, but not to the use of the home itself. You can still
monthly allowable square footage. You calculate the aver- deduct business expenses that are unrelated to the use of
age monthly allowable square footage by adding the the home. See Where To Deduct, later. Examples of busi-
amount of allowable square feet you used in each month ness expenses that are unrelated to the use of the home
and dividing the sum by 12. When determining the aver- are advertising, wages, supplies, dues, and depreciation
age monthly allowable square footage, you cannot take for equipment.
more than 300 square feet into account for any 1 month.
Additionally, if your qualified business use was less than Space used regularly for daycare. If you do not use
15 days in a month, you must use -0- for that month. the area of your home exclusively for daycare, you must
reduce the prescribed rate (maximum $5 per square foot)
Example 1. J files their federal income tax return on a before figuring your deduction. The reduced rate will equal
calendar year basis. On July 20, J began using 420 the prescribed rate times a fraction. The numerator of the
square feet at their home for a qualified business use. J fraction is the number of hours that the space was used
continued to use 420 square feet of their home until the during the year for daycare and the denominator is the to-
end of the year. The average monthly allowable square tal number of hours during the year that the space was
footage is 125 square feet, which is figured using 300 available for all uses. You can use the Daycare Facility
square feet for each month, August through December, Worksheet (for simplified method), near the end of this
divided by the number of months in the year ((0 + 0 + 0 + publication, to help you figure the reduced rate.
0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12).
If you used at least 300 square feet for daycare
Example 2. K files their federal tax return on a calen- TIP regularly and exclusively during the year, then you
dar year basis. On April 20, K began using 100 square do not need to reduce the prescribed rate or com-
feet of their home for a qualified business use. On August plete the Daycare Facility Worksheet.
5, K expanded the area of qualified use to 330 square
feet. K continued to use the 330 square feet until the end
of the year. The average monthly allowable square foot-
age is 150 square feet, which is figured using 100 square Daycare Facility
feet for May through July and 300 square feet for August
If you use space in your home on a regular basis for pro-
through December divided by the number of months in the
viding daycare, you may be able to claim a deduction for
year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 +
that part of your home even if you use the same space for
300 + 300)/12).
nonbusiness purposes. To qualify for this exception to the
Example 3. L files their income tax return on a calen- exclusive use rule, you must meet both of the following re-
dar year basis. From January 1 through July 16, L used quirements.
300 square feet of their home for a qualified business use. • You must be in the trade or business of providing day-
On July 17, L moved to a new home and immediately be- care for children, persons age 65 or older, or persons
gan using 200 square feet for the same qualified business who are physically or mentally unable to care for
use. While preparing their tax return, L decided to use the themselves.
simplified method to deduct the qualified business use of
the first home and files a Form 8829 to deduct the quali- • You must have applied for, been granted, or be ex-
empt from having a license, certification, registration,
fied business use of the second home. The average
or approval as a daycare center or as a family or
monthly allowable square footage is 175 square feet,
group daycare home under state law. You do not meet
which is figured using 300 square feet for January through
this requirement if your application was rejected or
July divided by the number of months in the year ((300 +
your license or other authorization was revoked.
300 + 300 + 300 + 300 + 300 + 300 + 0 + 0 + 0 + 0 + 0)/
12). Figuring the deduction. If you elect to use the simplified
If you moved during the year, your average allow- method for your home, figure your deduction as described
earlier in Using the Simplified Method under Figuring the
! able square footage will generally be less than
CAUTION 300. Deduction.
If you are figuring your deduction using actual expen-
Gross income limitation. Your deduction for business ses and you regularly use part of your home for daycare,
use of the home is limited to an amount equal to the gross figure what part is used for daycare, as explained in

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Business Percentage, earlier, under Figuring the Deduc- Gross income from the daycare business . . . . . . . . . . . $50,000
tion. If you also use that part exclusively for daycare, de- Expenses not related to the business use of the home . . . $25,000
duct all the allocable expenses, subject to the deduction Tentative profit. . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000
limit, as explained earlier. Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,400
If the use of part of your home as a daycare facility is Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $850
regular, but not exclusive, you must figure the percentage Painting the basement. . . . . . . . . . . . . . . . . . . . . . . $500
of time that part of your home is used for daycare. A room
that is available for use throughout each business day and M enters their tentative profit, $25,000, on line 8. (This
that you regularly use in your business is considered to be figure is the same as the amount on line 29 of their Sched-
used for daycare throughout each business day. You do ule C (Form 1040)).
not have to keep records to show the specific hours the The expenses they paid for rent and utilities relate to
area was used for business. You can use the area occa- their entire home. Therefore, M enters the amount paid for
sionally for personal reasons. However, a room you use rent on line 19, column (b), and the amount paid for utilit-
only occasionally for business does not qualify for the de- ies on line 21, column (b). M shows the total of these ex-
duction. penses on line 23, column (b). For line 24, M multiplies the
amount on line 23, column (b), by the percentage on line 7
To find the percentage of time you actually use
and enters the result, $1,585.
TIP your home for business, compare the total time
used for business to the total time that part of your M paid $500 to have the basement painted. The paint-
home can be used for all purposes. You can compare the ing is a direct expense. However, because the basement
hours of business use in a week with the number of hours was not used exclusively for daycare, M must multiply
in a week (168). Or, you can compare the hours of busi- $500 by the percentage of time the basement was used
ness use for the year with the number of hours in the year for daycare (34.25% – line 6). M then enters $171
(8,760 in 2022). If you started or stopped using your home (34.25% × $500) on line 20, column (a). M then adds
for daycare in 2022, you must prorate the number of hours line 23, column (a), and line 24 and enters $1,756 ($171 +
based on the number of days the home was available for $1,585) on line 26. This is less than M’s deduction limit
daycare. (line 15), so M can deduct the entire amount. M follows
the instructions to complete the rest of Part II and enters
Example 1. M used the basement at home to operate $1,756 on lines 34 and 36. Then M carries the $1,756 to
a daycare business for children. M figures the business line 30 of their Schedule C (Form 1040).

percentage of the basement as follows. Example 2. Assume the same facts as in Example 1
except that M also has another room that was available
Square footage of the basement 1,600 each business day for children to take naps in. Although
= = 50%
Square footage of the home 3,200
M did not keep a record of the number of hours the room
was used for naps, it was used for part of each business
M used the basement for daycare an average of 12 hours
day. Since the room was available for business use during
a day, 5 days a week, for 50 weeks a year. During the
regular operating hours each business day and was used
other 12 hours a day, the family could use the basement.
regularly in the business, it is considered used for daycare
M figures the percentage of time the basement was used
throughout each business day. The basement and room
for daycare as follows.
are 60% of the total area of the home. In figuring M’s ex-
penses, 34.25% of any direct expenses for the basement
Number of hours used for daycare (12 x 5 x 50) 3,000
= = 34.25%
Total number of hours in the year (24 x 365) 8,760 and room are deductible. In addition, 20.55% (34.25% ×
60%) of their indirect expenses are deductible.

M can deduct 34.25% of any direct expenses for the Example 3. Assume the same facts as in Example 1
basement. However, because M’s indirect expenses are except that M stopped using the home for a daycare fa-
for the entire house, M can deduct only 17.13% of the in- cility on June 24, 2022. M used the basement for daycare
direct expenses. M figures the percentage for their indi- an average of 12 hours a day, 5 days a week, but for only
rect expenses as follows. 25 weeks of the year. During the other 12 hours a day, M’s
family could still use the basement. M figures the percent-
Business percentage of the basement. . . . . . . . . . . . . 50% age of time the basement was used for business as fol-
Multiplied by: Percentage of time used for daycare . . . . . × 34.25%
lows.
Percentage for indirect expenses. . . . . . . . . . . . . . . . 17.13%
Number of hours used for daycare (12 x 5 x 25)
1,500
M completes Form 8829, Part I, figuring the percentage Total number of hours during period used (24 = 4,200 = 35.71%
of the home used for business, including the percentage x 175)
of time the basement was used.
In Part II, M figures their deductible expenses. M uses M can deduct 35.71% of any direct expenses for the
the following information to complete Part II. basement. However, because the indirect expenses are
for the entire house, M can deduct only 17.86% of the in-
direct expenses. M then figures the percentage for their
indirect expenses as follows.

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Business percentage of the basement. . . . . . . . . . . . . 50% You can compute the deductible cost of each meal and
Multiplied by: Percentage of time used for daycare . . . . . × 35.71% snack you actually purchased and served to an eligible
Percentage for indirect expenses. . . . . . . . . . . . . . . . 17.86% child during the time period you provided family daycare
using the standard meal and snack rates shown in Ta-
Meals. If you provide food for your daycare recipients, do ble 3. You can use the standard meal and snack rates for
not include the expense as a cost of using your home for a maximum of one breakfast, one lunch, one dinner, and
business. Claim it as a separate deduction on your three snacks per eligible child per day. If you receive reim-
Schedule C (Form 1040). You can never deduct the cost bursement for a particular meal or snack, you can deduct
of food consumed by you or your family. You can deduct only the portion of the applicable standard meal or snack
as a business expense 100% of the actual cost of food rate that is more than the amount of the reimbursement.
consumed by your daycare recipients (see Standard meal You can use either the standard meal and snack rates
and snack rates, later, for an optional method for eligible or actual costs to calculate the deductible cost of food
children) and generally only 50% of the cost of food con- provided to eligible children in the family daycare for any
sumed by your employees. However, you can deduct particular tax year. If you choose to use the standard meal
100% of the cost of food consumed by your employees if and snack rates for a particular tax year, you must use the
its value can be excluded from their wages as a de mini- rates for all your deductible food costs for eligible children
mis fringe benefit. For more information on meals that during that tax year. However, if you use the standard
meet these requirements, see Meals in chapter 2 of Pub. meal and snack rates in any tax year, you can use actual
15-B, Employer's Tax Guide to Fringe Benefits. costs to compute the deductible cost of food in any other
If you deduct the actual cost of food for your daycare tax year.
business, keep a separate record (with receipts) of your If you use the standard meal and snack rates, you must
family's food costs. maintain records to substantiate the computation of the to-
Reimbursements you receive from a sponsor under the tal amount deducted for the cost of food provided to eligi-
Child and Adult Care Food Program of the Department of ble children. The records kept should include the name of
Agriculture are taxable only to the extent they exceed your each child, dates and hours of attendance in the daycare,
expenses for food for eligible children. If your reimburse- and the type and quantity of meals and snacks served.
ments are more than your expenses for food, show the This information can be recorded in a log similar to the
difference as income in Part I of Schedule C (Form 1040). one shown in Exhibit A, near the end of this publication.
If your food expenses are greater than the reimburse- The standard meal and snack rates include beverages,
ments, show the difference as an expense in Part V of but do not include non-food supplies used for food prepa-
Schedule C (Form 1040). Do not include payments or ex- ration, service, or storage, such as containers, paper
penses for your own children if they are eligible for the products, or utensils. These expenses can be claimed as
program. Follow this procedure even if you receive a Form a separate deduction on your Schedule C (Form 1040).
1099-MISC, Miscellaneous Information, reporting a pay-
ment from the sponsor.
1
Standard meal and snack rates. If you qualify as a Table 3. Standard Meal and Snack Rates
family daycare provider, you can use the standard meal
Location of Breakfast Lunch Dinner Snack
and snack rates, instead of actual costs, to compute the
deductible cost of meals and snacks provided to eligible Family
children. For these purposes: Daycare
Provider
• A family daycare provider is a person engaged in the
business of providing family daycare; States other
than Alaska $1.40 $2.63 $2.63 $0.78
• Family daycare is childcare provided to eligible chil-
dren in the home of the family daycare provider. The and Hawaii
care must be non-medical, not involve a transfer of le- Alaska $2.23 $4.26 $4.26 $1.27
gal custody, and generally last less than 24 hours
Hawaii $1.63 $3.08 $3.08 $0.91
each day; and
1 The applicable rates for 2022 are the Child and Adult Care
• Eligible children are minor children receiving family
Food Program reimbursement rates in effect on December
daycare in the home of the family daycare provider.
Eligible children do not include children who are 31, 2021.
full-time or part-time residents in the home where the
childcare is provided or children whose parents or
guardians are residents of the same home. Eligible
Sale or Exchange of
children do not include children who receive daycare
services for personal reasons of the provider. For ex- Your Home
ample, if a provider provides daycare services for a
relative as a favor to that relative, that child is not an If you sell or exchange your home, you may be able to ex-
eligible child. clude up to $250,000 ($500,000 for certain married per-
sons filing a joint return) of the gain on the sale or

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exchange. In most cases, you must meet the ownership               the use test for the business part. You must report the sale 
and use tests. However, even if you meet the ownership             of the business part on Form 4797.
and use tests, your home sale is not eligible for the exclu-       To determine the amount to report on Form 4797, you 
sion if either of the following is true.                           must divide your selling price, selling expenses, and basis 
                                                                   between  the  part  of  the  property  used  for  business  and 
• You acquired the property through a like-kind ex-
                                                                   the separate part used as your home. In the same way, if 
  change (1031 exchange) during the past 5 years.
                                                                   you qualify to exclude any of the gain on the business part 
• You are subject to the expatriate tax.                           of your property, also divide your maximum exclusion be-
                                                                   tween that part of the property and the separate part used 
Ownership and use tests. The ownership and use tests               as your home.
generally require that during the 5-year period ending on 
the date of the sale:                                              Excluding gain on the business part of your prop-
                                                                   erty. You can generally exclude gain on the part of your 
• You owned the home for at least 2 years (ownership 
                                                                   property used for business if you owned and lived in that 
  test), and
                                                                   part  as  your  main  home  for  at  least  2  years  during  the 
• You lived in the home as your main home for at least 2           5-year period ending on the date of the sale.
  years (use test). The 2 years of residence can fall any-
  where within the 5-year period, and it does not need to          Use  test  met  for  business  part  (no  business  use  in 
  be a single block of time.                                       year of sale).   If you have used a separate part of your 
                                                                   property for business (though not in the year of sale) but 
                                                                   meet the use test for both the business part and the part 
Gain on Sale                                                       you use as a home, you do not need to treat the transac-
                                                                   tion as the sale of two properties. Also, you do not need to 
If you use property partly as a home and partly for busi-
                                                                   file Form 4797. You can generally exclude gain on the en-
ness, the treatment of any gain on the sale varies depend-
                                                                   tire property.
ing on whether the part of the property used for business 
is part of your home or separate from it.
                                                                   Depreciation
Part of Home Used for Business
                                                                   If you were entitled to deduct depreciation on the part of 
                                                                   your home used for business, you cannot exclude the part 
If the part of your property used for business is within your 
                                                                   of  the  gain  equal  to  any  depreciation  you  deducted  (or 
home, such as a room used as a home office for a busi-
                                                                   could have deducted) for periods after May 6, 1997. This 
ness or rooms used to provide daycare, you do not need 
                                                                   means that when figuring the amount of gain you can ex-
to  allocate  gain  on  the  sale  of  the  property  between  the 
                                                                   clude, you must reduce the total gain by any depreciation 
business  part  of  the  property  and  the  part  used  as  a 
                                                                   allowed  or  allowable  on  the  part  of  your  home  used  for 
home. In addition, you do not need to report the sale of 
                                                                   business after May 6, 1997.
the business part on Form 4797, Sales of Business Prop-
erty. This is true whether or not you were entitled to claim       If you can show by adequate records or other evidence 
any  depreciation.  However,  you  cannot  exclude  the  part      that  the  depreciation  you  actually  deducted  (the  allowed 
of any gain equal to any depreciation allowed or allowable         depreciation) was less than the amount you were entitled 
after May 6, 1997. See Depreciation, later.                        to  deduct  (the  allowable  depreciation),  the  amount  you 
                                                                   cannot  exclude  (and  must  subtract  from  your  total  gain 
Separate Part of Property Used for Business                        when figuring your exclusion) is the amount you actually 
                                                                   deducted.
You may have used part of your property as a home and a 
                                                                   You do not have to reduce the gain by any depreciation 
separate part of it, such as an outbuilding, for business.
                                                                   you  deducted  (or  could  have  deducted)  for  a  separate 
Use  test  not  met  for  business  part. You  cannot  ex-         structure for which you cannot exclude the allocable por-
clude gain on the separate part of your property used for          tion of the gain.
business unless you owned and lived in that part of your 
property for at least 2 years during the 5-year period end-        Basis Adjustment
ing on the date of the sale. If you do not meet the use test 
for the business part of the property, an allocation of the        If you used any part of your home for business, you must 
gain on the sale is required. For this purpose, you must al-       adjust  the  basis  of  your  home  for  any  depreciation  that 
locate the basis of the property and the amount realized           was  allowable  for  its  business  use,  even  if  you  did  not 
upon its sale between the business part and the part used          claim it. If you deducted less depreciation than you could 
as a home. You must report the sale of the business part           have under the method you properly selected, you must 
on Form 4797.                                                      decrease the basis by the amount you could have deduc-
                                                                   ted under that method. If you deducted more depreciation 
Use test met for business part (business use in year               than you should have under the method you properly se-
of sale). If you used a separate part of your property for         lected,  you  must  decrease  the  basis  by  the  amount  you 
business in the year of sale, you should treat the sale of         should  have  deducted,  plus  the  part  of  the  excess 
the property as the sale of two properties, even if you met        deducted that actually decreased your tax liability for any 

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year. For more information on reducing the basis of your If your business use of listed property is 50% or less,
property for depreciation, see Pub. 551. you cannot take a section 179 deduction and you must
depreciate the property using the Alternative Depreciation
Reporting the Sale System (ADS) (straight line method). For more informa-
tion on ADS, see Pub. 946.
Do not report the 2022 sale of your main home on your tax Listed property meets the more-than-50%-use test for
return unless: any year if its qualified business use is more than 50% of
its total use. You must allocate the use of any item of lis-
• You received a Form 1099-S, Proceeds From Real
ted property used for more than one purpose during the
Estate Transactions, for the sale or exchange;
year among its various uses. You cannot use the percent-
• You have a gain and you do not qualify to exclude all age of investment use as part of the percentage of quali-
of it; fied business use to meet the more-than-50%-use test.
• You have a gain and choose not to exclude it; or However, you do use the combined total of business and
investment use to figure your depreciation deduction for
• You have a loss from the sale that is deductible. the property.
A loss from the sale of your home, or the personal
Years following the year placed in service. If, in a
! part of your home if it was also used for business year after you place an item of listed property in service,
CAUTION or to produce rental income, is not deductible.
you fail to meet the more-than-50%-use test for that item
If any of these conditions apply, report the gain or loss of property, you may be required to do the following.
as explained in the Instructions for Schedule D. 1. Figure depreciation, beginning with the year you no
If you used the home for business, you may have to longer use the property more than 50% for business,
use Form 4797 to report the sale of the business part. See using the straight line method (ADS).
the Instructions for Form 4797. 2. Figure any excess depreciation (include any section
179 deduction on the property in figuring excess de-
More Information preciation) and add it to:
This section covers only the basic rules for the sale or ex- a. Your gross income, and
change of your home. For more information, see Pub. b. The adjusted basis of your property.
523, Selling Your Home.
For more information, see Pub. 946.

Reporting and recordkeeping requirements. If you
Business Furniture and use listed property in your business, you must file Form
4562 to claim a depreciation or section 179 deduction.
Equipment Begin with Part V, Section A, of that form.
This section discusses the depreciation and section 179 You cannot take any depreciation or section 179
deductions you may be entitled to take for furniture and deduction for the use of listed property unless you
equipment you use in your home for business. These de- RECORDS can prove your business/investment use with ad-
ductions are available whether or not you qualify to deduct equate records or sufficient evidence to support your own
expenses for the business use of your home. statements.

This section explains the different rules for each of the To meet the adequate records requirement, you must
following. maintain an account book, diary, log, statement of ex-
• Listed property. pense, trip sheet, or similar record or other documentary
evidence that is sufficient to establish business/invest-
• Property bought for business use. ment use. For more information on what records to keep,
• Personal property converted to business use. see Pub. 946.

Listed Property Property Bought for Business Use

If you use certain types of property, called listed property, If you bought certain property during 2022 to use in your
in your home, special rules apply. Listed property includes business, you can do any one of the following (subject to
any property of a type generally used for entertainment, the limits discussed later).
recreation, and amusement (including photographic, pho- Elect a section 179 deduction for the full cost of the
•
nographic, and video recording equipment). property.
More-than-50%-use test. If you bought listed property • Depreciate the cost of the property.
and placed it in service during the year, you must use it
• Take part of the cost as a section 179 deduction and
more than 50% for business to claim a section 179 deduc-
depreciate the balance.
tion or an accelerated depreciation deduction.

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Section 179 Deduction Table 4. MACRS Percentage Table for 5- and
7-Year Property Using Half-Year
You can claim the section 179 deduction for the cost of
Convention
depreciable tangible personal property bought for use in
your trade or business. You can choose how much (sub- Recovery Year 5-Year Property 7-Year Property
ject to the limit) of the cost you want to deduct under sec-
1 20.00% 14.29%
tion 179 and how much you want to depreciate. You can 2 32.00% 24.49%
spread the section 179 deduction over several items of 3 19.20% 17.49%
property in any way you choose as long as the total does 4 11.52% 12.49%
not exceed the maximum allowable. You cannot take a 5 11.52% 8.93%
section 179 deduction for the basis of the business part of 6 5.76% 8.92%
your home. 7 8.93%
8 4.46%
You elect the section 179 deduction by completing Part
I of Form 4562. See Pub. 946 for a discussion of the mid-quarter con-
vention and for complete MACRS percentage tables.
More information. For more information on the section
179 deduction, qualifying property, the dollar limit, and the Example. In June 2022, N bought a desk and three
business income limit, see Pub. 946 and the Instructions chairs for use at their office. The total bill for the furniture
for Form 4562. was $1,975. The taxable business income for the year
was $3,000 without any deduction for the office furniture.
Depreciation N can elect to do one of the following.
• Take a section 179 deduction for the full cost of the of-
Use Parts II and III of Form 4562 to claim your deduction fice furniture.
for depreciation on property placed in service during the
year. Do not include any costs deducted in Part I (section • Take part of the cost of the furniture as a section 179
179 deduction). deduction and depreciate the balance.
• Not take the section 179 deduction and depreciate the
Most business property normally used in a home office office furniture using its full cost.
is either 5-year or 7-year property under MACRS.
The furniture is 7-year property under MACRS. N does
• 5-year property includes computers and peripheral not take a section 179 deduction. N multiplies $1,975 by
equipment, typewriters, calculators, adding machines, 14.29% (0.1429) to get the MACRS depreciation deduc-
and copiers. tion of $282.23.
• 7-year property includes office furniture and fixtures
such as desks, files, and safes. Personal Property Converted to
Under MACRS, you generally use the half-year con- Business Use
vention, which allows you to deduct a half-year of depreci-
If you use property in your home office that was used pre-
ation in the first year you use the property in your busi-
viously for personal purposes, you cannot take a section
ness. If you place more than 40% of your depreciable
179 deduction for the property. You also cannot take a
property in service during the last 3 months of your tax
special depreciation allowance for the property. However,
year, you must use the mid-quarter convention instead of
you can depreciate it. The method of depreciation you use
the half-year convention.
depends on when you first used the property for personal
After you have determined the cost of the depreciable purposes.
property (minus any section 179 deduction and special If you began using the property for personal purposes
depreciation allowance taken on the property) and after 1986 and change it to business use in 2022, depreci-
whether it is 5-year or 7-year property, use the table, ate the property under MACRS.
shown next, to figure your depreciation if the half-year
convention applies. The basis for depreciation of property changed from
personal to business use is the lesser of the following.
• The adjusted basis of the property on the date of
change.
• The fair market value of the property on the date of
change.
If you began using the property for personal purposes
after 1980 and before 1987 and change it to business use
in 2022, you generally depreciate the property under the
accelerated cost recovery system (ACRS). However, if
the depreciation under ACRS is greater in the first year
than the depreciation under MACRS, you must depreciate

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it under MACRS. For information on ACRS, see Pub. 534, Form 8829 to your return depends on how you figure your
Depreciating Property Placed in Service Before 1987. deduction. See Line 30 in the Instructions for Schedule C
for more information.
If you began using the property for personal purposes
before 1981 and change it to business use in 2022, de- If you use your home in your farming business and file
preciate the property by the straight line or declining bal- Schedule F (Form 1040), report your entire deduction for
ance method based on salvage value and useful life. business use of the home on line 32 of Schedule F (Form
1040). Enter “Business Use of Home” on the dotted line
beside the entry.
Recordkeeping
Expenses Deductible Without Regard to a
You do not have to use a particular method of re- Business Connection
cordkeeping, but you must keep records that pro-
RECORDS vide the information needed to figure your deduc-
Certain expenses related to the use of your home may be
tions for the business use of your home. You should keep deducted whether or not you use your home for business.
canceled checks, receipts, and other evidence of expen- These expenses may include some or all of your mort-
ses you paid. gage interest, real estate taxes, and casualty losses attrib-
utable to a federally declared disaster. Where you deduct
Your records must show the following information. these expenses depends on how you figure your deduc-
• The part of your home you use for business. tion for business use of the home.

• That you use part of your home exclusively and regu- Using actual expenses to figure the deduction. In
larly for business as either your principal place of busi- general, you will deduct the business portion of these ex-
ness or as the place where you meet or deal with cli- penses on Schedule C (Form 1040) or Schedule F (Form
ents or customers in the normal course of your 1040) as part of your deduction for business use of your
business. However, see the earlier discussion, Excep- home. If you itemize your deductions, you will deduct the
tions to Exclusive Use under Qualifying for a Deduc- personal portion of these expenses on Schedule A (Form
tion. 1040).
• The depreciation and expenses for the business part. Home mortgage interest. The business portion of
You must keep your records for as long as they are impor- your home mortgage interest allowed as a deduction this
tant for any tax law. This is usually the later of the follow- year will be included in the business use of the home de-
ing dates. duction you report on Schedule C (Form 1040), line 30, or
Schedule F (Form 1040), line 32. If you cannot deduct the
• 3 years from the return due date or the date filed. business portion of your home mortgage interest in full
• 2 years after the tax was paid. this year, you will carry over the remaining home mort-
gage interest to a subsequent year in which you use ac-
Keep records to prove your home's depreciable basis.
tual expenses to figure your business of the home deduc-
This includes records of when and how you acquired your
tion.
home, your original purchase price, any improvements to
If you itemize your deductions on Schedule A (Form
your home, and any depreciation you are allowed be-
1040), only include the personal part of your deductible
cause you maintained an office in your home. You can
mortgage interest on Schedule A (Form 1040), line 8a or
keep copies of Forms 8829 or the Worksheet To Figure
8b. The personal portion of your home mortgage interest
the Deduction for Business Use of Your Home, found later
will generally be the amount of deductible home mortgage
in this publication, as records of depreciation.
interest you figured when treating all home mortgage in-
For more information on recordkeeping, see Pub. 583, terest as a personal expense and applying the Sched-
Starting a Business and Keeping Records. ule A (Form 1040) limits on deducting home mortgage in-
terest, reduced by the business or rental portions
deducted or carried over as a business or rental expense
on Schedule C, E, or F, or any form other than Sched-
Where To Deduct
ule A. Home mortgage interest that exceeds the amount
Deduct expenses for the business use of your home on you figured after applying the Schedule A (Form 1040)
Form 1040 or Form 1040-SR. Where you deduct these limits on deducting home mortgage interest is not deducti-
expenses on the form depends on whether you are a ble as a personal expense.
self-employed person or a partner. Real estate taxes. You figure the business portion of
your real estate taxes using Form 8829 (if you file Sched-
Self-Employed Persons ule C (Form 1040)) or the Worksheet To Figure the De-
duction for Business Use of Your Home in this publication
If you use your home in your trade or business and file (if you file Schedule F (Form 1040)). The business portion
Schedule C (Form 1040), report the entire deduction for of your real estate taxes allowed as a deduction this year
business use of your home on line 30 of Schedule C will be included in the business use of the home deduction
(Form 1040). Whether you need to complete and attach you report on Schedule C (Form 1040), line 30, or

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Schedule F (Form 1040), line 32. If you cannot deduct the Using actual expenses to figure your deduction. If
business portion of your real estate taxes in full this year, you file Schedule C (Form 1040), report the other home
you will carry over those real estate taxes to a subsequent expenses that would not be allowable if you did not use
year in which you use actual expenses to figure your busi- your home for business (for example, insurance, mainte-
ness of the home deduction. nance, utilities, and depreciation) on the appropriate lines
If you itemize your deductions on Schedule A (Form of your Form 8829. If you rent rather than own your home,
1040), only include the personal part of your real estate report the rent you paid on line 19 of Form 8829. If these
taxes on Schedule A (Form 1040), line 5b. The personal expenses exceed the deduction limit, carry the excess
portion of your real estate taxes will generally be the over to next year. The carryover will be subject to next
amount of real estate taxes you paid for the home re- year's deduction limit.
duced by the business or rental portions deducted or car- If you file Schedule F (Form 1040), include your other-
ried over as a business or rental expense on Schedule C, wise nondeductible expenses (insurance, maintenance,
E, or F, or any form other than Schedule A. utilities, depreciation, etc.) with your total busi-
ness-use-of-the-home expenses on Schedule F (Form
Casualty losses. You will figure the business portion
1040), line 32. Enter “Business Use of Home” on the dot-
of the casualty losses attributable to your home using
ted line beside the entry. If these expenses exceed the
Form 8829 (if you file Schedule C (Form 1040)) or the
deduction limit, carry the excess over to the next year.
Worksheet To Figure the Deduction for Business Use of
The carryover will be subject to next year's deduction limit.
Your Home in this publication (if you file Schedule F (Form
1040)). The business portion of your casualty losses al- Using the simplified method to figure your deduc-
lowed as a deduction this year will be reported on line 27 tion. You cannot deduct any of these expenses. The sim-
in Section B of Form 4684. If you cannot deduct the busi- plified method is an alternative to calculating and substan-
ness portion of your casualty losses in full this year, you tiating these expenses. Figure your deduction using the
will carry over those losses to a subsequent year in which Simplified Method Worksheet.
you use actual expenses to figure your business of the
home deduction.
Business Expenses Not for Use of Your
Only include the personal portion of your casualty los-
ses in Section A of the Form 4684 you attach to your re- Home

turn. If you itemize your deductions on Schedule A (Form No matter how you figure the deduction for business use
1040), you will include the deductible personal portion of of your home, deduct business expenses that are not for
the casualty losses attributable to your home figured on the use of your home itself (dues, salaries, supplies, cer-
line 18 of Form 4684 on line 15 of Schedule A and the net tain telephone expenses, depreciation of equipment, etc.)
qualified disaster losses attributable to your home figured on the appropriate lines of Schedule C (Form 1040) or
on line 15 of Form 4684 on line 16 of Schedule A. If you Schedule F (Form 1040). These expenses are not for the
are increasing your standard deduction by a net qualified use of your home, so they are not subject to the deduction
disaster loss, you will add the net qualified disaster loss limit for business use of the home expenses.
figured on line 15 of Form 4684 to your standard deduc-
tion using a Schedule A.
Partners
Using the simplified method to figure your deduc-
tion. If you use the simplified method to figure your de- You may be allowed to deduct unreimbursed ordinary and
duction for the business use of a home, your mortgage in- necessary expenses you paid on behalf of the partnership
terest, real estate taxes, and casualty losses are treated (including qualified expenses for the business use of your
as personal expenses, and they are subject to any limits home) if you were required to pay these expenses under
that apply to deducting personal expenses. No part of any the partnership agreement and they are trade or business
of these expenses can be deducted as a business ex- expenses under section 162.
pense on Schedule C (Form 1040) or Schedule F (Form If you are using actual expenses to figure your deduc-
1040). Generally, you can only deduct these expenses if tion for the business use of your home, use the Worksheet
you itemize your deductions on Schedule A (Form 1040). To Figure the Deduction for Business Use of Your Home,
later. If you are using the simplified method to figure your
Business Expenses for Use of Your Home deduction for the business use of your home, use the Sim-
plified Method Worksheet, later.
Other expenses related to the use of your home may be
deducted only to the extent they are related to the busi- Deducting unreimbursed partnership expenses. See
ness use of your home. These expenses include insur- the following forms and related instructions for information
ance, maintenance, utilities, and depreciation of your about deducting unreimbursed partnership expenses.
home. You cannot deduct the personal portion of any of
• Schedule E (Form 1040), Supplemental Income and
these expenses. Where you deduct the business portion
Loss.
of these expenses depends on how you figure your de-
duction for business use of the home. • Schedule SE (Form 1040), Self-Employment Tax.

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• Schedule K-1 (Form 1065), Partner's Share of In- Lines 5–7. Use lines 5, 6, and 7 for business use of the
come, Deductions, Credits, etc. home expenses that would have been deductible as a
personal expense if you had not used your home for busi-
More information. For more information about partners ness. These expenses include certain casualty losses,
and partnerships, see Pub. 541, Partnerships. mortgage interest, and real estate taxes.
Taxpayers claiming the standard deduction. If you
claim the standard deduction, you will not include any
Worksheet To Figure the mortgage interest, or real estate taxes on lines 6 and 7; in-
stead, you will claim the entire business use of the home
Deduction for Business Use of portion of those expenses using lines 14 and 15. If you are
Your Home not increasing your standard deduction by a net qualified
disaster loss, then you will not include any casualty losses
This worksheet is to be used by taxpayers filing Sched- on line 5; instead, you will claim the entire business use of
ule F (Form 1040) or by partners with certain unreim- the home portion of your casualty losses on line 27. If you
bursed ordinary and necessary expenses if using actual are filing Schedule A to increase your standard deduction
expenses to figure the deduction. If you are using the sim- by a net qualified disaster loss, see Casualty losses repor-
plified method to figure your deduction, use the Simplified ted on line 5, later.
Method Worksheet, later. You may prefer to itemize your deductions on
TIP Schedule A to claim amounts on lines 5, 6, and 7,
even if your total personal deductions are less
Instructions for the Worksheet To than the standard deduction.
Figure the Deduction for Business
Use of Your Home Casualty losses reported on line 5. Figure the amount
to include in column (b) of line 5 as follows.
Step 1. Complete a worksheet version of Section A of
The Worksheet To Figure the Deduction for Business Use
Form 4684 treating all your casualty losses (and gains) as
of Your Home is to be used by taxpayers filing Schedule F
personal expenses. If you are itemizing your deductions,
(Form 1040) or by partners with certain unreimbursed or-
when completing line 17 of this worksheet version of Form
dinary and necessary expenses if using actual expenses
4684, enter 10% of your adjusted gross income excluding
to figure the deduction. The following instructions explain
the gross income and deductions attributable to the busi-
how to complete each part of the worksheet.
ness use of the home. Do not file this worksheet version of
Partners. See Partners under Where To Deduct, earlier, Form 4684; instead, keep it for your records. You will
before completing the worksheet. complete a separate Form 4684 to attach to your return
using only the personal portion of your casualty losses
If you file Schedule C (Form 1040) and use actual (and gains) for Section A.
! expenses to figure your deduction, use Form Step 2. Include in column (b) of line 5 the loss amounts
CAUTION 8829 instead of this worksheet.
from lines 15 and 18 of this worksheet version of Form
4684 that are attributable to the home in which you con-
Part 1—Part of Your Home Used for ducted the business and are the result of a federally de-
Business clared disaster. If you are claiming an increased standard
deduction instead of itemizing your deductions, only use a
Lines 1–3. If you figure the percentage based on area, net qualified disaster loss on line 15 of the worksheet ver-
use lines 1 through 3 to figure the business-use percent- sion of Form 4684 for this Step 2.
age. Enter the percentage on line 3. See the instructions for line 33, later, for the business
You can use any other reasonable method that accu- use of the home casualty losses that you must include in
rately reflects your business-use percentage. If you oper- Section B of the separate Form 4684 you attach to your
ate a daycare facility and you meet the exception to the return.
exclusive use test for part or all of the area you use for Casualty losses reported on Schedule A. Use only
business, you must figure the business-use percentage the personal portion of your casualty losses (and gains)
for that area as explained under Daycare Facility, earlier. when completing Section A of the separate Form 4684
If you use another method to figure your business per- you attach to your return. The separate Form 4684 you at-
centage, skip lines 1 and 2 and enter the percentage on tach to your return is used to figure the casualty losses
line 3. you can include on line 15 of Schedule A and the net
qualified disaster losses you can include on line 16 of
Part 2—Figure Your Allowable Deduction Schedule A.
Line 4. If you file Schedule F (Form 1040), enter your to- Excess casualty losses. See the instructions for
tal gross income that is related to the business use of your line 27, later, to deduct the part of your casualty losses for
home. This would generally be the amount on line 9 of business use of your home not allowed because of the
Schedule F (Form 1040). limits on deducting casualty losses as a personal

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Worksheet To Figure the Deduction for Business Use of 
Your Home                                                                                                                              Keep for Your Records
Use this worksheet if you file Schedule F (Form 1040) or you are a partner, and you are using actual expenses to 
figure your deduction for business use of the home. Use a separate worksheet for each qualified business use of your 
home.
PART 1—Part of Your Home Used for Business:
1) Area of home used for business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      1)  
2) Total area of home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2)  
3) Percentage of home used for business (divide line 1 by line 2 and show result as percentage) . . . . .                                                              3)   %
PART 2—Figure Your Allowable Deduction
4) Gross income from business (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               4)  
                                                                                                           (a)                          (b)
                                                                                                           Direct                       Indirect 
                                                                                                           Expenses                     Expenses
5) Casualty losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            5)                                
6) Deductible mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . .                     6)                                
7) Real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            7)                                
8) Total of lines 5 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               8)                                
9) Multiply line 8, column (b), by line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                9)  
10) Add line 8, column (a), and line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               10)  
11) Business expenses not from business use of home (see instructions) . . . . . . . . .                                           11)  
12) Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            12)  
13) Deduction limit. Subtract line 12 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        13)  
14) Excess mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  14)                               
15) Excess real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                15)                               
16) Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       16)                               
17) Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17)                               
18) Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   18)                               
19) Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19)                               
20) Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            20)                               
21) Add lines 14 through 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               21)                               
22) Multiply line 21, column (b), by line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                22)  
23) Carryover of operating expenses from prior year (see instructions) . . . . . . . . . . .                                       23)  
24) Add line 21, column (a), line 22, and line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          24)  
25) Allowable operating expenses. Enter the smaller of line 13 or line 24 . . . . . . . . . . . . . . . . . . . . . . . . .                                            25)  
26) Limit on excess casualty losses and depreciation. Subtract line 25 from line 13 . . . . . . . . . . . . . . . . .                                                  26)  
27) Excess casualty losses (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      27)  
28) Depreciation of your home from line 40 below . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         28)  
29) Carryover of excess casualty losses and depreciation from prior year (see 
     instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29)  
30) Add lines 27 through 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              30)  
31) Allowable excess casualty losses and depreciation. Enter the smaller of line 26 or line 30 . . . . . . . .                                                         31)  
32) Add lines 10, 25, and 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               32)  
33) Casualty losses included on lines 10 and 31 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                       33)  
34) Allowable expenses for business use of your home. (Subtract line 33 from line 32.) See instructions 
     for where to enter on your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 34)  
PART 3—Depreciation of Your Home
35) Smaller of adjusted basis or fair market value of home (see instructions) . . . . . . . . . . . . . . . . . . . . . . .                                            35)  
36) Basis of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      36)  
37) Basis of building (subtract line 36 from line 35) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          37)  
38) Business basis of building (multiply line 37 by line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              38)  
39) Depreciation percentage (from applicable table or method) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      39)  %
40) Depreciation allowable (multiply line 38 by line 39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             40)  
PART 4—Carryover of Unallowed Expenses to Next Year
41) Operating expenses. Subtract line 25 from line 24. If less than zero, enter -0- . . . . . . . . . . . . . . . . . . .                                              41)  
42) Excess casualty losses and depreciation. Subtract line 31 from line 30. If less than zero, 
     enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42)  

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expense, including any losses that are not the result of a Line 7 Worksheet
federally declared disaster.
1. Enter your state and local income taxes (or, if
Mortgage interest reported on line 6. If you are claim- you elect on Schedule A, your state and local
ing the standard deduction, do not report an amount on general sales taxes) that are personal
line 6. If you itemize your deductions, figure the amount to expenses. . . . . . . . . . . . . . . . . . . . . . . . . 1.
include in column (b) of line 6 as follows. 2. Enter all the state and local real estate taxes you
paid on the home in which you conducted
Step 1. Treat all the mortgage interest you paid as a business. . . . . . . . . . . . . . . . . . . . . . . . . 2.
personal expense and figure the amount that would be 3. Enter any other state and local real estate taxes
deductible as an itemized deduction on Schedule A. See you paid that are a personal expense and not
Pub. 936 for more information about figuring the home included in line 2 . . . . . . . . . . . . . . . . . . . . 3.
mortgage interest deduction and the limits that may apply. 4. Enter your state and local personal property
Step 2. Include in column (b) of line 6 the amount of taxes that are a personal expense. . . . . . . . . . 4.
deductible mortgage interest figured in Step 1 that is at- 5. Add lines 1 through 4 . . . . . . . . . . . . . . . . . 5.
tributable to the home in which you conducted the busi- 6. Multiply line 2 by the percentage on line 3 of the
ness. Because the limits on deducting mortgage interest Worksheet To Figure the Deduction for Business
as a personal expense are figured using all loans secured Use of Your Home . . . . . . . . . . . . . . . . . . . 6.
by your home(s), do not claim mortgage interest in column 7. Subtract line 6 from line 5. . . . . . . . . . . . . . . 7.
(a) as a direct expense, even if you use a separate struc- 8. Subtract line 7 from $10,000 ($5,000 if married
ture in your home in connection with your trade or busi- filing separately). If zero or less, enter -0-. . . . . 8.
ness. 9. Real estate taxes reported on line 7. Enter the
smaller of line 6 or line 8 here and in column (a)
Mortgage interest reported on Schedule A. When of line 7 of the Worksheet To Figure the
you figure your itemized deduction for mortgage interest Deduction for Business Use of Your Home . . . . 9.
on Schedule A, include the following amounts of deducti- 10. Excess real estate taxes reported on line 15.
ble mortgage interest that you figured in Step 1 to the ex- Subtract line 9 from line 6 . . . . . . . . . . . . . . . 10.
tent they are not deducted on another form, such as
Schedule E, as a rental expense. Real estate taxes reported on Schedule A. When
you figure your itemized deduction for state and local
• The amount of deductible mortgage interest you fig- taxes on Schedule A, only include the personal portion of
ured in Step 1 that is not attributable to the home in your real estate taxes on line 5b of Schedule A.
which you conducted the business.
Excess real estate taxes. See the instructions for
• The personal portion of deductible mortgage interest line 15, later, to deduct the part of your real estate taxes
you included in column (b) of line 6. For example, if for the home in which you conducted business that is not
your business percentage on line 3 is 30%, 70% of the allowed on line 7 because of the limitation on deducting
amount you included in column (b) of line 6 is deducti- state and local taxes as a personal expense.
ble as an itemized deduction on Schedule A.
Excess mortgage interest. See the instructions for Lines 9 and 10. Multiply your total indirect expenses
line 14, later, to deduct the part of your mortgage interest (line 8, column (b)) by the business percentage from
from loans used to buy, build, or substantially improve the line 3. Enter the result on line 9. Add this amount to the to-
home in which you conducted business that is not allowed tal direct expenses (line 8, column (a)) and enter the total
on line 6 because of the limits on deducting home mort- on line 10.

gage interest as a personal expense. Lines 11–13. Enter any other business expenses that are
Real estate taxes reported on line 7. If you are claim- not attributable to business use of the home on line 11.
ing the standard deduction, do not report an amount on Farmers should generally enter their total farm expenses
line 7. If you are itemizing deductions, figure the amount to before deducting office-in-the-home expenses. Do not en-
include on line 7 as follows. ter the deductible part of your self-employment tax. Add
Step 1. If the total of your state and local income (or, if the amounts on lines 10 and 11, and enter the total on
elected on your Schedule A, general sales) taxes, real es- line 12. Subtract line 12 from line 4, and enter the result on
tate taxes, and personal property taxes is not more than line 13. This is your deduction limit. You use it to deter-
$10,000 ($5,000 if married filing separately), enter all the mine whether you can deduct any of your other expenses
real estate taxes attributable to the home in which you for business use of the home this year. If you cannot, you
conducted business in column (b) of line 7. will carry them over to the next year in which you use ac-
Step 2. If you do not meet the condition of Step 1, use tual expenses to figure the deduction.
the following worksheet to figure the amount to include in If line 13 is zero or less, enter -0-. Deduct your expen-
column (a) of line 7. ses for deductible home mortgage interest, real estate
taxes, casualty losses, and any business expenses not at-
tributable to use of your home on the appropriate lines of
the schedule(s) for Form 1040 or Form 1040-SR, as ex-
plained earlier under Where To Deduct.

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Lines 14–23. On lines 14 through 20, enter your other- conducted business that are in excess of the amount re-
wise nondeductible expenses for the business use of your ported on line 5 (if any) by the business percentage of
home. These include utilities, insurance, repairs, and those losses and enter the result.
maintenance. If you rent, report the amount paid on
line 17. In column (a), enter the expenses that benefit only Lines 32–34. On line 32, total all allowable business use
the business part of your home (direct expenses). In col- of the home deductions.
umn (b), enter the expenses that benefit the entire home On line 33, enter the total of the casualty losses shown
(indirect expenses). Multiply line 21, column (b), by the on lines 10 and 31. Enter the amount from line 33 on
business-use percentage (line 3) and enter this amount line 27 of Form 4684, Section B. Attach a statement to
on line 22. your tax return showing how you calculated the deductible
If you deducted actual expenses for the business use loss (you can use the worksheet as your attachment) and
of your home on your 2021 tax return, enter on line 23 the enter "See attached statement" above line 27 of Form
amount from line 41 of your 2021 worksheet. If you used 4684. See the Instructions for Form 4684 for more infor-
the simplified method in 2021, enter on line 23 the amount mation on completing that form.
from line 6a of your 2021 Simplified Method Worksheet. Line 34 is the total (other than casualty losses) allowa-
ble as a deduction for business use of your home. If you
Line 14—Excess home mortgage interest. If you file Schedule F (Form 1040), enter this amount on line 32,
are claiming the standard deduction, enter all the home Other expenses, of Schedule F (Form 1040) and enter
mortgage interest paid for loans used to buy, build, or sub- “Business Use of Home” on the line beside the entry. Do
stantially improve the home in which you conducted busi- not add the specific expenses into other line totals of Part
ness in column (b) of line 14. Do not include mortgage in- II of Schedule F (Form 1040).
terest on a loan that did not benefit your home (for If you are a partner, see Where To Deduct, earlier, for
example, a home equity loan used to pay off credit card information on how to claim the deduction.
bills, to buy a car, or to pay tuition costs).
If you are itemizing deductions on Schedule A and the
Part 3—Depreciation of Your Home
amount you figured in Step 1 under Mortgage interest re-
ported on line 6, earlier, was less than the full amount of
Figure your depreciation deduction on lines 35 through
interest you paid because of the limits on deducting home
40. On line 35, enter the smaller of the adjusted basis or
mortgage interest as a personal expense, include the ex-
the fair market value of the property at the time you first
cess attributable to the loans used to buy, build, or sub-
used it for business. Do not adjust this amount for
stantially improve the home in which you conducted busi-
changes in basis or value after that date. Allocate the ba-
ness in column (b) of line 14.
sis between the land and the building on lines 36 and 37.
Example. If you paid $15,000 of home mortgage inter- You cannot depreciate any part of the land. On line 39,
est on loans used to buy, build, or substantially improve enter the correct percentage for the current year from the
the home in which you conducted business but would only tables in Pub. 946. Multiply this percentage by the busi-
be able to deduct $12,000 on Schedule A because of the ness basis to get the depreciation deduction. Enter this
limits that apply to deducting home mortgage interest as a figure on lines 40 and 28. Complete and attach Form 4562
personal expense, include $3,000 ($15,000 - $12,000 = to your return if this is the first year you used your home,
$3,000) in column (b) of line 14. or an improvement or addition to your home, in business.

Line 15—Excess real estate taxes. If you are claim- Part 4—Carryover of Unallowed Expenses
ing the standard deduction, enter all the real estate taxes
to Next Year
paid on the home in which you conducted business in col-
umn (b) of line 15.
Complete these lines to figure the expenses that must be
If you are itemizing deductions on Schedule A and you
carried forward to the next year in which you use actual
used the Line 7 Worksheet to figure the amount to include
expenses.
in column (a) of line 7, then include the amount from
line 10 of the Line 7 Worksheet in column (a) of line 15 of
the Worksheet To Figure the Deduction for Business Use
of Your Home; otherwise do not enter an amount on Worksheets To Figure the
line 15.
Deduction for Business Use of
Lines 26–31. On lines 26 through 31, figure your limit on
deductions for excess casualty losses and depreciation. Your Home (Simplified
If you deducted actual expenses for business use of
your home on your 2021 tax return, enter on line 29 the Method)
amount from line 42 of your 2021 worksheet. If you used
the simplified method in 2021, enter on line 29 the amount The Simplified Method Worksheet and the Daycare Fa-
from line 6b of your 2021 Simplified Method Worksheet. cility Worksheet in this section are to be used by taxpay-
ers filing Schedule F (Form 1040) or by partners with cer-
Line 27—Excess casualty loss. Multiply the casu- tain unreimbursed ordinary and necessary expenses if
alty losses attributable to the home in which you using the simplified method to figure the deduction. If you

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Simplified Method Worksheet
Use this worksheet if you file Schedule F (Form 1040) or you are a partner, and you are using the simplified method to 
figure your deduction for business use of the home. Use a separate worksheet for each qualified business use of your 
home.
1. Enter the amount of the gross income limitation. See the Instructions for the Simplified 
   Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1.   

2. Allowable square footage for the qualified business use. Do not enter more than 300 square 
   feet. See the Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                              2.   

3. Simplified method amount
   a. Maximum allowable amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         3a.  $5
   b. For daycare facilities not used exclusively for business, enter the decimal amount from the 
     Daycare Facility Worksheet; otherwise, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        3b.  
   c. Multiply line 3a by line 3b and enter result to 2 decimal places . . . . . . . . . . . . . . . . . . . . . . . . . .                                             3c.  

4. Multiply line 2 by line 3c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          4.   

5. Allowable expenses using the simplified method. Enter the smaller of line 1 or line 4. If 
   zero or less, enter -0-. See Where To Deduct, earlier, for where to enter this amount on 
   your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.   

6. Carryover of unallowed expenses from a prior year that are not allowed in 2022.
   a. Operating expenses. Enter the amount, if any, from your last Worksheet To Figure the 
     Deduction for Business Use of Your Home, line 41 (line 40 if before 2018). See the 
     Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        6a.  
   b. Excess casualty losses and depreciation. Enter the amount, if any, from your last 
     Worksheet To Figure the Deduction for Business Use of Your Home, line 42 (line 41 if 
     before 2018). See the Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . .                                                            6b.  

are  filing  Schedule  C  (Form  1040)  to  report  a  business  The Area Adjustment Worksheet in this section may be 
use of your home in your trade or business and you are           used by any taxpayer using the simplified method to figure 
using  the  simplified  method  to  figure  the  deduction,  use the deduction.
the Simplified Method Worksheet and the Daycare Facility 
Worksheet  in  your  Instructions  for  Schedule  C  for  that 
business use.

Daycare Facility Worksheet (for simplified method)
1. Multiply days used for daycare during the year by hours used per day . . . . . . . . . . . . . . .                                             1.  

2. Total hours available for use during the year. See the Instructions for the Daycare 
   Facility Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.  

3. Divide line 1 by line 2. Enter the result as a decimal amount here and on line 3b of the 
   Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            3.  

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Area Adjustment Worksheet (for simplified method)
If you used the same area for your qualified business use for the entire year, complete only Part I; otherwise, skip Part I 
and complete Part II using lines 1 through 5 to help you figure the amount to enter for each month. All amounts reported 
on this worksheet must be in square feet.
Part I. Same area was used for the entire year.
1. Area used for this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1.  

2. Shared use. Complete line 2 if someone else also used the home to conduct business that qualifies 
for the deduction; otherwise, enter 300 on line 2d and go to line 3.
a. Area not shared. Enter portion of line 1 that was not shared with another person's qualified 
   business use of the home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               2a.  
b. Total area shared with another person's qualified business use. Subtract line 2a from line 1 . . . . .                                                       2b.  
c. Reasonable allocation of shared area to this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . .                                        2c.  
d. Add lines 2a and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2d.  

3. Multiple qualified business uses. Complete line 3 if you used the home for more than one qualified 
business use; otherwise, enter 300 on line 3d and go to line 4.
a. Total area of home used for all your qualified business uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   3a.  
b. Maximum area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         3b.  300
c. Enter the smaller of line 3a and 3b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  3c.  
d. Reasonable allocation of line 3c to this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    3d.  

4. Maximum area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4.   300

5. Enter the smaller of lines 1, 2d, 3d, and 4. Enter the result on line 2 of the Simplified Method 
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.  

Part II. Area changed during the year or was used for only part of the year.
6. Complete lines 6a through 6n if you used the area for this qualified business use for part of the year or the area used for this 
qualifying business use changed during the year.

   (i) Month           Note. If your qualified business use was less than 15 days in a month,                                                                        (ii) Area
                       enter -0- in column (ii) for that month; otherwise, use lines 1 through 5 
                       above for each month, and enter the amount you get for line 5 in column 
                       (ii) for that month. 
a. January             . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b. February            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c. March               . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d. April               . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e. May                 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f. June                . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g. July                . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
h. August              . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i. September           . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
j. October             . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
k. November            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
l. December            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
m. Add lines 6a through 6l, column (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 6m.  
n. Average monthly allowable square footage. Divide line 6m by 12. Enter the result on line 2 of the 
   Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  6n.  

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Instructions for the Simplified Method Line 2. If you used the same area for the entire year, en-
ter the smaller of the square feet you actually used or 300.
Worksheet If you and your spouse conducted the business as a quali-
If you are a partner or you file Schedule F (Form 1040), fied joint venture, split the square feet between you and
and you elected to use the simplified method, use the your spouse in the same manner you split your other tax
Simplified Method Worksheet. The following instructions attributes. If you shared space with someone else, used
explain how to complete this worksheet. the home for business for only part of the year, or the area
you used changed during the year, see Allowable area un-
Partners. See Partners under Where To Deduct, earlier, der Using the Simplified Method, earlier, before entering
before completing the Simplified Method Worksheet. an amount on this line. Do not enter more than 300 square
feet or, if applicable, the average monthly allowable
Use the Simplified Method Worksheet to figure the square footage on this line. See Part-year use or area
amount of expenses you may deduct for a qualified busi- changes (for simplified method only) under Using the Sim-
ness use of a home if you are electing to use the simplified plified Method, earlier, for more information on how to fig-
method for that home. If you are not electing to use the ure your average monthly allowable square footage.
simplified method, use Form 8829 or the Worksheet To
Figure the Deduction for Business Use of Your Home, Line 3b. If your qualified business use is providing day-
earlier, as appropriate. care, you may need to account for the time that you used
the same part of your home for other purposes. If you
Line 1. If all gross income from your trade or business is used the part of your home exclusively and regularly for
from this qualified business use of your home, figure your providing daycare, enter 1.0 on line 3b. If you did not use
gross income limitation as follows. the part of your home exclusively for providing daycare,
complete the Daycare Facility Worksheet to figure what
A. Enter the amount of gross income. If you file Schedule F number to enter on line 3b.
(Form 1040), this amount would generally be the amount
on line 9 of Schedule F. . . . . . . . . . . . . . . . . . . . . . Line 6. Since you are using the simplified method this
B. Enter any gain derived from the business use of your year, you cannot deduct the amounts you entered on lines
home and shown on Form 8949 (and included on 6a and 6b this year. If you figure your deduction for busi-
Schedule D) or Form 4797. . . . . . . . . . . . . . . . . . . .
ness use of the home using actual expenses next year,
C. Add lines A and B. . . . . . . . . . . . . . . . . . . . . . . . .
you will be able to include these expenses when you fig-
D. Business expenses not from business use of the home. . ure your deduction.
E. Enter the total amount of any losses (as a positive
number) shown on Form 8949 (and included on Line 6a. If you did not complete a 2021 Worksheet To
Schedule D) or Form 4797 that are allocable to the Figure the Deduction for Business Use of Your Home,
business, but not allocable to the business use of the then your carryover of prior-year operating expenses is
home. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the amount of operating expenses shown in Part 4 of the
F. Add lines D and E. . . . . . . . . . . . . . . . . . . . . . . . . last Worksheet To Figure the Deduction for Business Use
G. Gross income limitation. Subtract line F from line C. Enter of Your Home, if any, that you completed using actual ex-
the result here and on line 1 . . . . . . . . . . . . . . . . . . .
penses in order to claim a deduction for business use of
the home as a partner or Schedule F filer.
If some of the income is from a place of business other
than your home, you must first determine the part of your Line 6b. If you did not complete a 2021 Worksheet To
gross income from the business use of your home. In Figure the Deduction for Business Use of Your Home,
making this determination, consider the amount of time then your carryover of prior-year excess casualty losses
you spent at each location as well as other facts. After de- and depreciation is the amount of excess casualty losses
termining the part of your gross income from the business and depreciation shown in Part 4 of the last Worksheet To
use of your home, subtract from that amount the total ex- Figure the Deduction for Business Use of Your Home, if
penses and any losses that are allocable to the business any, that you completed using actual expenses to claim a
in which you use your home but that are not allocable to deduction for business use of the home as a partner or
the business use of the home. Schedule F filer.
Only include on line A the gross income from the busi-
ness that is related to the business use of your home. Instructions for the Daycare Facility
Only include on line D and line E the deductible business
expenses and losses that are related to the business ac- Worksheet

tivity in the home, but not related to the business use of Use the Daycare Facility Worksheet to figure the percent-
the home itself. age to use on line 3b of the Simplified Method Worksheet.
Note. If you had more than one home in which you If you do not use the area of your home exclusively for
conducted this business during the year, include only the daycare, you must reduce the amount on line 3a before
income earned and the deductions attributable to that in- figuring your deduction using the simplified method.
come during the period you owned the home for which
you elected to use the simplified method.

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If you used at least 300 square feet for daycare January only; then, enter the result in line 6a, column (ii).
TIP regularly and exclusively during the year, then you If, in any month, you did not have 15 or more days of this
do not need to complete this worksheet. This qualified business use, enter -0- for that month. For exam-
worksheet is only needed if you did not use the allowable ple, if you did not begin using your home for this qualified
area exclusively for daycare. business use until January 20, enter -0- in line 6a, column
(ii).
Line 1. Enter the total number of hours the facility was
used for daycare during the year.
How To Get Tax Help
Example. Your home is used Monday through Friday
for 12 hours per day for 250 days during the year. It is also If you have questions about a tax issue; need help prepar-
used on 50 Saturdays for 8 hours a day. Enter 3,400 ing your tax return; or want to download free publications,
hours on line 4 (3,000 hours for weekdays plus 400 hours forms, or instructions, go to IRS.gov to find resources that
for Saturdays). can help you right away.

Line 2. If you used your home for daycare during the en- Preparing and filing your tax return. After receiving all
tire year, multiply 365 days (366 for a leap year) by 24 your wage and earnings statements (Forms W-2, W-2G,
hours, and enter the result. 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment
If you started or stopped using your home for daycare compensation statements (by mail or in a digital format) or
during the year, you must prorate the number of hours other government payment statements (Form 1099-G);
based on the number of days the home was available for and interest, dividend, and retirement statements from
daycare. Multiply 24 hours by the number of days availa- banks and investment firms (Forms 1099), you have sev-
ble and enter that result. eral options to choose from to prepare and file your tax re-
turn. You can prepare the tax return yourself, see if you
Instructions for the Area Adjustment qualify for free tax preparation, or hire a tax professional to
Worksheet prepare your return.

Free options for tax preparation. Go to IRS.gov to see
Use the Area Adjustment Worksheet to figure the area
your options for preparing and filing your return online or
that you may use to figure your deduction.
in your local community, if you qualify, which include the
Line 2. If you and another person both used the home to following.
conduct business that qualifies for the deduction, the • Free File. This program lets you prepare and file your
same area cannot be used by both persons to figure the federal individual income tax return for free using
deduction. brand-name tax-preparation-and-filing software or
Free File fillable forms. However, state tax preparation
Line 2c. With the other people using the home for quali- may not be available through Free File. Go to IRS.gov/
fied business use, determine a reasonable allocation of FreeFile to see if you qualify for free online federal tax
shared space to your qualified business use. Do not in- preparation, e-filing, and direct deposit or payment op-
clude area that is claimed by another person. tions.
Line 3. If you used your home for more than one qualified • VITA. The Volunteer Income Tax Assistance (VITA)
business use, the total area that you can use to figure the program offers free tax help to people with
deduction is still only 300 square feet, not 300 square feet low-to-moderate incomes, persons with disabilities,
per business use. You may allocate the square footage and limited-English-speaking taxpayers who need
among your qualified business uses in any reasonable help preparing their own tax returns. Go to IRS.gov/
manner, but you may not allocate more square feet to a VITA, download the free IRS2Go app, or call
qualified business use than was actually used. 800-906-9887 for information on free tax return prepa-
ration.
Line 3d. Allocate part of line 3c to this qualified business
use. Do not allocate more square feet to this qualified • TCE. The Tax Counseling for the Elderly (TCE) pro-
gram offers free tax help for all taxpayers, particularly
business use than was actually used during the year. Do
those who are 60 years of age and older. TCE volun-
not allocate any amount on line 3c to this qualified busi-
teers specialize in answering questions about pen-
ness use that you allocated to another qualified business
sions and retirement-related issues unique to seniors.
use.
Go to IRS.gov/TCE, download the free IRS2Go app,
Line 6. If you only used the area for this qualified busi- or call 888-227-7669 for information on free tax return
ness use for part of the year or the area used for this quali- preparation.
fying business use changed during the year, then you • MilTax. Members of the U.S. Armed Forces and
need to figure the average monthly allowable square foot- qualified veterans may use MilTax, a free tax service
age. To do this, use lines 1 through 5 of this worksheet for offered by the Department of Defense through Military
each month. For example, for January, complete lines 1 OneSource. For more information, go to
through 5 using the area and allocation information for MilitaryOneSource MilitaryOneSource.mil/MilTax ( ).

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Also, the IRS offers Free Fillable Forms, which can more information on how to choose a tax preparer, go to
be completed online and then filed electronically re- Tips for Choosing a Tax Preparer on IRS.gov.
gardless of income.
Coronavirus. Go to IRS.gov/Coronavirus for links to in-
Using online tools to help prepare your return. Go to formation on the impact of the coronavirus, as well as tax
IRS.gov/Tools for the following. relief available for individuals and families, small and large
businesses, and tax-exempt organizations.
• The Earned Income Tax Credit Assistant IRS.gov/ (
EITCAssistant) determines if you’re eligible for the Employers can register to use Business Services On-
earned income credit (EIC). line. The Social Security Administration (SSA) offers on-
• The Online EIN Application IRS.gov/EIN ( ) helps you line service at SSA.gov/employer for fast, free, and secure
get an employer identification number (EIN) at no online W-2 filing options to CPAs, accountants, enrolled
cost. agents, and individuals who process Form W-2, Wage
and Tax Statement, and Form W-2c, Corrected Wage and
• The Tax Withholding Estimator IRS.gov/W4app ( )
Tax Statement.
makes it easier for you to estimate the federal income
tax you want your employer to withhold from your pay- IRS social media. Go to IRS.gov/SocialMedia to see the
check. This is tax withholding. See how your withhold- various social media tools the IRS uses to share the latest
ing affects your refund, take-home pay, or tax due. information on tax changes, scam alerts, initiatives, prod-
• The First-Time Homebuyer Credit Account Look-up ucts, and services. At the IRS, privacy and security are
(IRS.gov/HomeBuyer) tool provides information on our highest priority. We use these tools to share public in-
your repayments and account balance. formation with you. Don’t post your social security number
(SSN) or other confidential information on social media
• The Sales Tax Deduction Calculator IRS.gov/ ( sites. Always protect your identity when using any social
SalesTax) figures the amount you can claim if you networking site.
itemize deductions on Schedule A (Form 1040). The following IRS YouTube channels provide short, in-
Getting answers to your tax questions. On formative videos on various tax-related topics in English,
IRS.gov, you can get up-to-date information on Spanish, and ASL.
current events and changes in tax law. Youtube.com/irsvideos.
•
• IRS.gov/Help: A variety of tools to help you get an- Youtube.com/irsvideosmultilingua.
•
swers to some of the most common tax questions.
• Youtube.com/irsvideosASL.
• IRS.gov/ITA: The Interactive Tax Assistant, a tool that
will ask you questions and, based on your input, pro- Watching IRS videos. The IRS Video portal
vide answers on a number of tax law topics. (IRSVideos.gov) contains video and audio presentations
• IRS.gov/Forms: Find forms, instructions, and publica- for individuals, small businesses, and tax professionals.
tions. You will find details on the most recent tax
Online tax information in other languages. You can
changes and interactive links to help you find answers
find information on IRS.gov/MyLanguage if English isn’t
to your questions.
your native language.
• You may also be able to access tax law information in
your electronic filing software. Free Over-the-Phone Interpreter (OPI) Service. The
IRS is committed to serving our multilingual customers by
offering OPI services. The OPI Service is a federally fun-
Need someone to prepare your tax return? There are ded program and is available at Taxpayer Assistance
various types of tax return preparers, including enrolled Centers (TACs), other IRS offices, and every VITA/TCE
agents, certified public accountants (CPAs), accountants, return site. The OPI Service is accessible in more than
and many others who don’t have professional credentials. 350 languages.
If you choose to have someone prepare your tax return,
choose that preparer wisely. A paid tax preparer is: Accessibility Helpline available for taxpayers with
• Primarily responsible for the overall substantive accu- disabilities. Taxpayers who need information about ac-
racy of your return, cessibility services can call 833-690-0598. The Accessi-
bility Helpline can answer questions related to current and
• Required to sign the return, and future accessibility products and services available in al-
• Required to include their preparer tax identification ternative media formats (for example, braille, large print,
number (PTIN). audio, etc.). The Accessibility Helpline does not have ac-
cess to your IRS account. For help with tax law, refunds,
Although the tax preparer always signs the return, or account-related issues, go to IRS.gov/LetUsHelp.
you're ultimately responsible for providing all the informa-
tion required for the preparer to accurately prepare your
return. Anyone paid to prepare tax returns for others
should have a thorough understanding of tax matters. For

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Note. Form 9000, Alternative Media Preference, or 10 taxpayers use direct deposit to receive their refunds. If
Form 9000(SP) allows you to elect to receive certain types you don’t have a bank account, go to IRS.gov/
of written correspondence in the following formats. DirectDeposit for more information on where to find a
• Standard Print. bank or credit union that can open an account online.

• Large Print. Getting a transcript of your return. The quickest way
• Braille. to get a copy of your tax transcript is to go to IRS.gov/
Transcripts. Click on either “Get Transcript Online” or “Get
• Audio (MP3). Transcript by Mail” to order a free copy of your transcript.
• Plain Text File (TXT). If you prefer, you can order your transcript by calling
800-908-9946.
• Braille Ready File (BRF).
Reporting and resolving your tax-related identity
Disasters. Go to Disaster Assistance and Emergency
theft issues.
Relief for Individuals and Businesses to review the availa-
ble disaster tax relief. • Tax-related identity theft happens when someone
steals your personal information to commit tax fraud.
Getting tax forms and publications. Go to IRS.gov/ Your taxes can be affected if your SSN is used to file a
Forms to view, download, or print all the forms, instruc- fraudulent return or to claim a refund or credit.
tions, and publications you may need. Or, you can go to
IRS.gov/OrderForms to place an order. • The IRS doesn’t initiate contact with taxpayers by
email, text messages (including shortened links), tele-
Getting tax publications and instructions in eBook phone calls, or social media channels to request or
format. You can also download and view popular tax verify personal or financial information. This includes
publications and instructions (including the Instructions for requests for personal identification numbers (PINs),
Form 1040) on mobile devices as eBooks at IRS.gov/ passwords, or similar information for credit cards,
eBooks. banks, or other financial accounts.
• Go to IRS.gov/IdentityTheft, the IRS Identity Theft
Note. IRS eBooks have been tested using Apple's Central webpage, for information on identity theft and
iBooks for iPad. Our eBooks haven’t been tested on other data security protection for taxpayers, tax professio-
dedicated eBook readers, and eBook functionality may nals, and businesses. If your SSN has been lost or
not operate as intended. stolen or you suspect you’re a victim of tax-related
Access your online account (individual taxpayers identity theft, you can learn what steps you should
only). Go to IRS.gov/Account to securely access infor- take.
mation about your federal tax account. • Get an Identity Protection PIN (IP PIN). IP PINs are
• View the amount you owe and a breakdown by tax six-digit numbers assigned to taxpayers to help pre-
year. vent the misuse of their SSNs on fraudulent federal in-
come tax returns. When you have an IP PIN, it pre-
• See payment plan details or apply for a new payment vents someone else from filing a tax return with your
plan. SSN. To learn more, go to IRS.gov/IPPIN.
• Make a payment or view 5 years of payment history
and any pending or scheduled payments. Ways to check on the status of your refund.
• Access your tax records, including key data from your • Go to IRS.gov/Refunds.
most recent tax return, and transcripts. • Download the official IRS2Go app to your mobile de-
• View digital copies of select notices from the IRS. vice to check your refund status.
• Approve or reject authorization requests from tax pro- • Call the automated refund hotline at 800-829-1954.
fessionals.
Note. The IRS can’t issue refunds before mid-Febru-
• View your address on file or manage your communi- ary for returns that claimed the EIC or the additional child
cation preferences. tax credit (ACTC). This applies to the entire refund, not
just the portion associated with these credits.
Tax Pro Account. This tool lets your tax professional
submit an authorization request to access your individual Making a tax payment. Go to IRS.gov/Payments for in-
taxpayer IRS online account. For more information, go to formation on how to make a payment using any of the fol-
IRS.gov/TaxProAccount. lowing options.
Using direct deposit. The fastest way to receive a tax • IRS Direct Pay: Pay your individual tax bill or estima-
refund is to file electronically and choose direct deposit, ted tax payment directly from your checking or sav-
which securely and electronically transfers your refund di- ings account at no cost to you.
rectly into your financial account. Direct deposit also • Debit or Credit Card: Choose an approved payment
avoids the possibility that your check could be lost, stolen, processor to pay online or by phone.
destroyed, or returned undeliverable to the IRS. Eight in

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• Electronic Funds Withdrawal: Schedule a payment Contacting your local IRS office. Keep in mind, many
when filing your federal taxes using tax return prepara- questions can be answered on IRS.gov without visiting an
tion software or through a tax professional. IRS TAC. Go to IRS.gov/LetUsHelp for the topics people
ask about most. If you still need help, IRS TACs provide
• Electronic Federal Tax Payment System: Best option
tax help when a tax issue can’t be handled online or by
for businesses. Enrollment is required.
phone. All TACs now provide service by appointment, so
• Check or Money Order: Mail your payment to the ad- you’ll know in advance that you can get the service you
dress listed on the notice or instructions. need without long wait times. Before you visit, go to
• Cash: You may be able to pay your taxes with cash at IRS.gov/TACLocator to find the nearest TAC and to check
a participating retail store. hours, available services, and appointment options. Or,
on the IRS2Go app, under the Stay Connected tab,
• Same-Day Wire: You may be able to do same-day choose the Contact Us option and click on “Local Offices.”
wire from your financial institution. Contact your finan-
cial institution for availability, cost, and time frames.
The Taxpayer Advocate Service (TAS)
Note. The IRS uses the latest encryption technology to Is Here To Help You
ensure that the electronic payments you make online, by
phone, or from a mobile device using the IRS2Go app are What Is TAS?
safe and secure. Paying electronically is quick, easy, and
TAS is an independent organization within the IRS that
faster than mailing in a check or money order.
helps taxpayers and protects taxpayer rights. Their job is
What if I can’t pay now? Go to IRS.gov/Payments for to ensure that every taxpayer is treated fairly and that you
more information about your options. know and understand your rights under the Taxpayer Bill
of Rights.
• Apply for an online payment agreement IRS.gov/ (
OPA) to meet your tax obligation in monthly install-
How Can You Learn About Your Taxpayer
ments if you can’t pay your taxes in full today. Once
you complete the online process, you will receive im- Rights?

mediate notification of whether your agreement has The Taxpayer Bill of Rights describes 10 basic rights that
been approved. all taxpayers have when dealing with the IRS. Go to
• Use the Offer in Compromise Pre-Qualifier to see if TaxpayerAdvocate.IRS.gov to help you understand what
you can settle your tax debt for less than the full these rights mean to you and how they apply. These are
amount you owe. For more information on the Offer in your rights. Know them. Use them.
Compromise program, go to IRS.gov/OIC.
What Can TAS Do for You?
Filing an amended return. Go to IRS.gov/Form1040X
for information and updates. TAS can help you resolve problems that you can’t resolve
with the IRS. And their service is free. If you qualify for
Checking the status of your amended return. Go to their assistance, you will be assigned to one advocate
IRS.gov/WMAR to track the status of Form 1040-X amen- who will work with you throughout the process and will do
ded returns. everything possible to resolve your issue. TAS can help
you if:
Note. It can take up to 3 weeks from the date you filed
your amended return for it to show up in our system, and • Your problem is causing financial difficulty for you,
processing it can take up to 16 weeks. your family, or your business;
Understanding an IRS notice or letter you’ve re- • You face (or your business is facing) an immediate
ceived. Go to IRS.gov/Notices to find additional informa- threat of adverse action; or
tion about responding to an IRS notice or letter. • You’ve tried repeatedly to contact the IRS but no one
has responded, or the IRS hasn’t responded by the
Note. You can use Schedule LEP (Form 1040), Re- date promised.
quest for Change in Language Preference, to state a pref-
erence to receive notices, letters, or other written commu-
How Can You Reach TAS?
nications from the IRS in an alternative language. You
may not immediately receive written communications in TAS has offices in every state, the District of Columbia,
the requested language. The IRS’s commitment to LEP and Puerto Rico. Your local advocate’s number is in your
taxpayers is part of a multi-year timeline that is scheduled local directory and at TaxpayerAdvocate.IRS.gov/
to begin providing translations in 2023. You will continue Contact-Us. You can also call them at 877-777-4778.
to receive communications, including notices and letters
in English until they are translated to your preferred lan-
guage.

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How Else Does TAS Help Taxpayers? to resolve tax problems with the IRS, such as audits, ap-
peals, and tax collection disputes. In addition, LITCs can
TAS works to resolve large-scale problems that affect provide information about taxpayer rights and responsibili-
many taxpayers. If you know of one of these broad issues, ties in different languages for individuals who speak Eng-
report it to them at IRS.gov/SAMS. lish as a second language. Services are offered for free or
a small fee for eligible taxpayers. To find an LITC near
TAS for Tax Professionals you, go to TaxpayerAdvocate.IRS.gov/about-us/Low-
Income-Taxpayer-Clinics-LITC or see IRS Pub. 4134, Low
TAS can provide a variety of information for tax professio- Income Taxpayer Clinic List.
nals, including tax law updates and guidance, TAS pro-
grams, and ways to let TAS know about systemic prob-
lems you’ve seen in your practice.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS. LITCs represent in-
dividuals whose income is below a certain level and need

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                                                                                                                                                                                                                   Totals             Number served:        _____      Breakfasts: _____          Lunches: _____ Dinners: ______  Snacks: ______       Number served:        _____      Breakfasts: _____ Lunches: _____ Dinners: _____  Snacks: _____       Number served:       _____       Breakfasts: _____ Lunches: _____ Dinners: _____  Snacks: _____       Number served:       _____            Breakfasts: _____ Lunches: _____ Dinners: _____                Snacks: _____

                                                                                                                                                                                              Keep For Your Records

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Sunday             Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Saturday           Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Friday             Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Thursday           Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                          Family Daycare Provider Meal and Snack Log
                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Wednesday          Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                          Exhibit A.

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Tuesday            Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                                                                                                                                                                                                                                                                   Bkfst          Snack    Lunch Snack           Dinner          Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                              Bkfst Snack    Lunch Snack          Dinner         Snack                                                   Bkfst Snack    Lunch Snack                        Dinner        Snack
                                                                                                                                                                                                                   Monday             Hours of             attendance: _____                                                                           Hours of             attendance: _____                                                                Hours of             attendance: _____                                                                Hours of             attendance:      _____

                                                                                    Name of Provider _______________________________ Week of _____________________________ Year______________                      Child's Name

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                     To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                       Adjusted basis    8
A                                      Business furniture and                I
Adjusted basis defined   8             equipment       16 17,                Improvements (See Permanent 
Administrative or management           Fair market value  8                   improvements)
 activities 4                          Figuring depreciation for the current Insurance 7
Assistance (See Tax help)              year    8                             Inventory, storage of 3
Attorneys 5                            Home   7
                                       Nonresidential real property  8       L
B                                      Percentage table for 39-year          Listed property:
Business expenses not for use of       nonresidential real property    8      Defined 16
 home    19                            Percentage table for 5- and 7-year     Reporting and recordkeeping 
Business furniture and                 property   17                          requirements   16
 equipment   16                        Permanent improvements   8 9,          Years following the year placed in 
Business percentage    9             Depreciation of home     7               service   16
Business use of the home               Basis adjustment   15
 requirements (See Qualifying for a    MACRS (Table 2)     8                 M
 deduction)                            Property bought for business          MACRS percentage table:
                                       use    15                              39-year nonresidential real 
C                                      Sale or exchange of your home   15     property    8
Carryover of unallowed               Doctors  5                               5- and 7-year property    17
 expenses   9                                                                Meals 14
Child and Adult Care Food            E                                       Meeting with patients, clients, or 
 Program reimbursements      14      Exclusive use     3                      customers on premises                      5
                                     Expenses:                               More than one place of 
D                                      Direct 6                               business  10
Daycare facilities 12                  Indirect 6                            More than one trade or business                  5
 Eligible children for standard meal   Insurance  7                          More-than-50%-use test     16
  and snack rates    14                Related to tax-exempt income    6
 Exceptions for regular use            Rent 7                                P
  requirement   12                     Repairs  7                            Partners 19
 Family daycare   14                   Security system   7                   Partnership expenses, 
 Meals   14                            Telephone  7                           unreimbursed   19
 Regular basis  12                     Unrelated  6                          Permanent improvements                      8 9, 
 Standard meal and snack rates   14    Utilities and services 7              Personal property converted to 
Deduction limit 9                      Where to deduct    18                  business use   17
Deduction requirements:                                                      Place of business, more than 
 Exceptions to exclusive use 3       F                                        one  10
 Exclusive use  3                                                            Principal place of business                 3
                                     Fair market value    8
 More than one trade or business 5                                           Product samples 3
                                     Family daycare providers   14
 Place to meet patients, clients, or                                         Property bought for business use:
                                       Meal and snack log (Exhibit A)  32
  customers     5                                                             Depreciation 17
                                       Standard meal and snack rates   14
 Principal place of business 3                                                Section 179 deduction     16 17, 
                                     Figuring the deduction:
 Regular use  3                                                              Property converted to business 
                                       Business percentage    9
 Separate structure  6                                                        use, Personal  17
                                       Deduction limit   9
 Storage of inventory or product                                             Publications 2
  samples    3                       Form 2 18, 
 Trade or business use  3              1040, Schedule F:                     Q
Deductions                             Worksheet       21
                                                                             Qualifying for a deduction                  2
 Figuring 6 20,                        4562 16
 Limit 9                               8829 6 9 13,  ,                       R
 Part-year use  6                                                            Recordkeeping   18
                                     H
 Qualifying for 2 6-                                                         Regular use 3
 Unreimbursed partnership            Home:
                                                                             Reminders 2
  expenses    19                       Business percentage    9
                                                                             Rent 7
 Using Actual Expenses   6             Depreciation    7
                                                                             Repairs 7
Dentists 5                             Sale of 14
                                                                             Reporting and recordkeeping 
Depreciation 16                      Home expenses, Can you deduct            requirements   16
 5-year property  17                   business use of, Figure A     4
                                                                              Meal and snack log (Exhibit A)                  32
 7-year property  17

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Reporting requirements:              Electing the simplified method 10   Standard meal and snack rates 
  Business furniture and             More than one home    11            (Table 3)  14
  equipment    16                    More than one qualified business    Types of expenses (Table 1)                     6
                                     use     11                         Tax help, How to Get 27
S                                    Shared use 11                      Telephone  7
Sale or exchange of your home    14  Expenses deductible without regard Trade or business use 3
  Basis adjustment  15               to business use    10              Types of expenses 6
  Depreciation 15                    No deduction of carryover of 
  Ownership and use tests 15         unallowed expenses    10           U
Schedule F (See Worksheet to figure  Part-year use or area changes  12  Utilities 7
  the deduction)                     Simplified amount  11
Section 179 17                       Space used regularly for           W
  Business furniture and             daycare 12
                                                                        Where to deduct expenses                         18
  equipment    16                    Using the simplified method    10
                                                                         Self-employed 18
  Listed property 16                Standard meal and snack rates     14
                                                                        Worksheets:
  Personal property converted to    Storage of inventory or product 
  business use    17                 samples 3                           Area Adjustment Worksheet (for 
                                                                         simplified method)  25
  Property bought for business                                           Worksheet to figure the deduction 
  use   16                          T
                                                                         for business use of your home                     21
Security system   7                 Tables and figures:                  Worksheets to figure the deduction 
Self-employed persons:               MACRS:                              for business use of your home 
  Deduction of expenses  18          Percentage table for 39-year        (simplified method)  23
Separate structure  6                nonresidential real property        Daycare facility worksheet (for 
Simplified Method:                   (Table 2)  8                        simplified method)    24
  Actual expenses and depreciation   Percentage table for 5- and         Simplified method worksheet                       24
  of your home    10                 7-year property (Table 4)      17
  Allowable area  11                 Qualifying for deduction (Figure 
  Business expenses not related to   A) 4
  use of the home    12

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