Department of the Treasury

Internal Revenue Service

Publication 587

Cat. No. 15154T

Business Use 

of Your Home

(Including Use by 

Daycare Providers)

For use in preparing

2023 Returns

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Contents

Future Developments ....................... 1

Reminders ............................... 1

Introduction .............................. 2

Qualifying for a Deduction ................... 2

Exclusive Use ........................... 3

Regular Use ............................ 3

Trade or Business Use .................... 3

Principal Place of Business ................. 3

Place To Meet Patients, Clients, or 

Customers ........................... 5

Separate Structure ....................... 6

Figuring the Deduction ...................... 6

Using Actual Expenses .................... 6

Using the Simplified Method ............... 10

Daycare Facility .......................... 12

Sale or Exchange of Your Home .............. 14

Business Furniture and Equipment ........... 16

Recordkeeping ........................... 17

Where To Deduct ......................... 18

Self-Employed Persons ................... 18

Partners .............................. 19

Worksheet To Figure the Deduction for 

Business Use of Your Home .............. 19

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

Future Developments

For the latest information about developments related to 

Pub. 587, such as legislation enacted after it was 

published, go to IRS.gov/Pub587.

Reminders

Mortgage insurance premiums. The itemized deduction for mortgage insurance premiums has expired. You 

can no longer claim the deduction as of tax year 2022.

Simplified method for business use of home deduction. The IRS provides a simplified method to figure your 

Feb 22, 2024
expenses for business use of your home. For more information, see Using the Simplified Method under Figuring 

the Deduction, later.

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Missing & Exploited Children® (NCMEC). Photographs of 

missing children selected by the Center may appear in 

this publication on pages that would otherwise be blank. 

You can help bring these children home by looking at the 

photographs and calling 800-THE-LOST (800-843-5678) 

if you recognize a child.

Introduction

The purpose of this publication is to provide information 

on figuring and claiming the deduction for business use of 

your home. The term “home” includes a house, apartment, 

condominium, mobile home, boat, or similar property that 

provides basic living accommodations. It also includes 

structures on the property, such as an unattached garage, 

studio, barn, or greenhouse. However, it does not include 

any part of your property used exclusively as a hotel, motel, inn, or similar establishment.

Qualifying for a Deduction gives the requirements for 

qualifying to deduct expenses for the business use of your 

home (including special rules for storing inventory or product samples). For special rules that apply to daycare providers, see Daycare Facility.

After you determine that you qualify for the deduction, 

Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified 

method. The simplified method is an alternative to calculating and substantiating actual expenses.

Where To Deduct explains where a self-employed person or partner will report the deduction.

This publication also includes information on the following.

• Selling a home that was used partly for business.

• Deducting expenses for furniture and equipment used 

in your business.

• Records you should keep.

Finally, this publication contains worksheets to help you 

figure the amount of your deduction if you use 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 section 162 and that you are required to pay under the partnership agreement. If you used your home for business 

and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in 

your Instructions for Schedule C.

The rules in this publication apply to individuals.

If you need information on deductions for renting out 

your property, see Pub. 527, Residential Rental Property 

(Including Rental of Vacation Homes).

Comments and suggestions. We welcome your comments about this publication and suggestions for future 

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue 

Service, Tax Forms and Publications, 1111 Constitution 

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or viewing the categories listed.

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Useful Items

You may want to see:

Publication

Selling Your Home

Basis of Assets

Starting a Business and Keeping Records

How To Depreciate Property

Form (and Instructions)

Shele C (Frm 1040) Profit or Loss From 

Business

462 Depreciation and Amortization

8829 Expenses for Business Use of Your Home

Qualifying for a Deduction

Generally, you cannot deduct items related to your home, 

such as mortgage interest, real estate taxes, utilities, 

maintenance, rent, depreciation, or property insurance, as 

business expenses. However, you may be able to deduct 

expenses related to the business use of part of your home 

if you meet specific requirements. Even then, the deductible amount of these types of expenses may be limited. 

 523

 551

 583

 946

 Schedule C (Form 1040)

 4562 

 8829 

2 Publication 587 (2023)
Use this section and Figure A to decide if you can deduct 

expenses for the business use of your home.

To qualify to deduct expenses for business use of your 

home, you must use part of your home:

• Exclusively and regularly as your principal place of 

business (see Principal Place of Business, later);

• Exclusively and regularly as a place where you meet 

or deal with patients, clients, or customers in the normal course of your trade or business;

• In the case of a separate structure that is not attached 

to your home, in connection with your trade or business;

• On a regular basis for certain storage use (see Storage of inventory or product samples, later);

• For rental use (see Pub. 527); or

• As a daycare facility (see Daycare Facility, later).

Exclusive Use

To qualify under the exclusive use test, you must use a 

specific area of your home only for your trade or business. 

The area used for business can be a room or other separately identifiable space. The space does not need to be 

marked off by a permanent partition.

You do not meet the requirements of the exclusive use 

test if you use the area in question both for business and 

for personal purposes.

Example. You are an attorney and use a den in your 

home to write legal briefs and prepare clients' tax returns. 

Your family also uses the den for recreation. The den is 

not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den.

Exceptions to Exclusive Use

You do not have to meet the exclusive use test if either of 

the following applies.

• You use the part of your home in question for the storage of inventory or product samples (discussed next).

• You use the part of your home in question as a daycare facility (discussed later under Daycare Facility).

Note. With the exception of these two uses, any portion of the home used for business purposes must meet 

the exclusive use test.

Storage of inventory or product samples. If you use 

part of your home for storage of inventory or product samples, you can deduct expenses for the business use of 

your home without meeting the exclusive use test. However, you must meet all the following tests.

• You sell products at wholesale or retail as your trade or 

business.

• You keep the inventory or product samples in your 

home for use in your trade or business.

• Your home is the only fixed location of your trade or 

business.

• You use the storage space on a regular basis.

• The space you use is a separately identifiable space 

suitable for storage.

Example. Your home is the only fixed location of your 

business of selling mechanics' tools at retail. You regularly 

use half of your basement for storage of inventory and 

product samples. You sometimes use the area for personal purposes. The expenses for the storage space are 

deductible even though you do not use this part of your 

basement exclusively for business.

Regular Use

To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. Incidental or occasional business use is not regular use. You 

must consider all facts and circumstances in determining 

whether your use is on a regular basis.

Trade or Business Use

To qualify under the trade-or-business-use test, you must 

use part of your home in connection with a trade or business. If you use your home for a profit-seeking activity that 

is not a trade or business, you cannot take a deduction for 

its business use.

Example. You use part of your home exclusively and 

regularly to read financial periodicals and reports, clip 

bond coupons, and carry out similar activities related to 

your own investments. You do not make investments as a 

broker or dealer. So, your activities are not part of a trade 

or business and you cannot take a deduction for the business use of your home.

Principal Place of Business

You can have more than one business location, including 

your home, for a single trade or business. To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must 

be your principal place of business for that trade or business. To determine whether your home is your principal 

place of business, you must consider:

• The relative importance of the activities performed at 

each place where you conduct business, and

• The amount of time spent at each place where you 

conduct business.

Your home office will qualify as your principal place of 

business if you meet the following requirements.

• You use it exclusively and regularly for administrative 

or management activities of your trade or business.

• You have no other fixed location where you conduct 

substantial administrative or management activities of 

your trade or business.

Publication 587 (2023) 3
If, after considering your business locations, your home 

cannot be identified as your principal place of business, 

you cannot deduct home office expenses. However, see 

the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways 

to qualify to deduct home office expenses.

Administrative or management activities. There are 

many activities that are administrative or managerial in nature. The following are a few examples.

• Billing customers, clients, or patients.

• Keeping books and records.

• Ordering supplies.

• Setting up appointments.

• Forwarding orders or writing reports.

Administrative or management activities performed 

at other locations. The following activities performed by 

you or others will not disqualify your home office from being your principal place of business.

• You have others conduct your administrative or management activities at locations other than your home. 

(For example, another company does your billing from 

its place of business.)

• You conduct administrative or management activities 

at places that are not fixed locations of your business, 

such as in a car or a hotel room.

• You occasionally conduct minimal administrative or 

management activities at a fixed location outside your 

home.

• You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. (For example, you meet with or provide services to customers, clients, or patients at a 

fixed location of the business outside your home.)

• You have suitable space to conduct administrative or 

management activities outside your home, but choose 

to use your home office for those activities instead.

Example 1. Sid is a self-employed plumber. Most of 

Sid's time is spent at customers' homes and offices installing and repairing plumbing. Sid has a small office at 

home that is used exclusively and regularly for the administrative or management activities of the plumbing business, such as phoning customers, ordering supplies, and 

keeping the books.

Sid writes up estimates and records of work completed 

at the customers' premises. Sid does not conduct any 

substantial administrative or management activities at any 

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:

Yes

Is part of your home

used in connection with

a trade or business? 

Are you using the part of 

your home as an employee?

Is it your principal place 

of business?

Do you meet patients, 

clients, or customers in 

your home? 

No deduction Is it a separate 

structure?

No

Yes

No

Yes

No

No

No Deduction allowed

Yes

No

Yes

Yes

Is the use regular 

and exclusive? 

4 Publication 587 (2023)
fixed location other than their home office. Sid does not do 

direct billing. Sid uses a local bookkeeping service to bill 

their customers.

Sid's home office qualifies as their principal place of 

business for deducting expenses. Sid uses the home office for the administrative or managerial activities of the 

plumbing business and has no other fixed location where 

these administrative or managerial activities are conducted. Sid’s choice to have billing done by another company 

does not disqualify the home office from being their principal place of business. Sid meets all the qualifications, including principal place of business, so the expenses (subject to certain limitations, explained later) can be deducted 

for the business use of the home.

Example 2. Alex is a self-employed sales representative for several different product lines. Alex has an office in 

their home that they use exclusively and regularly to set up 

appointments and write up orders and other reports for the 

products Alex sells. Alex occasionally writes up orders 

and sets up appointments from their hotel room while 

away on business overnight.

Alex’s business is selling products to customers at various locations throughout their assigned territory. To make 

these sales, Alex regularly visits customers to explain the 

available products and take orders.

Alex's home office qualifies as their principal place of 

business for deducting expenses for its use. Alex conducts administrative or management activities there and 

they have no other fixed location where substantial administrative or management activities are conducted. The fact 

that Alex conducts some administrative or management 

activities in a hotel room (not a fixed location) does not 

disqualify the home office from being their principal place 

of business. Alex meets all the qualifications, including 

principal place of business, so the expenses (subject to 

certain limitations, explained later) can be deducted for 

the business use of the home.

Example 3. Taylor is a self-employed anesthesiologist. Taylor spends the majority of their time administering 

anesthesia and postoperative care in three local hospitals. 

One of the hospitals provides a small shared office where 

Taylor could conduct administrative or management activities.

Taylor very rarely uses the office the hospital provides 

but instead uses a room at home that has been converted 

to an office. Taylor uses this room exclusively and regularly to conduct all the following activities.

• Contacting patients, surgeons, and hospitals regarding scheduling.

• Preparing for treatments and presentations.

• Maintaining billing records and patient logs.

• Satisfying continuing medical education requirements.

• Reading medical journals and books.

Taylor’s home office qualifies as their principal place of 

business for deducting expenses for its use. Taylor conducts administrative or management activities for their 

business as an anesthesiologist there and at no other 

fixed location where substantial administrative or management activities for this business are conducted. Taylor’s 

choice to use their home office instead of the one provided by their hospital does not disqualify their home office 

from being their principal place of business. Taylor’s performance of substantial nonadministrative or nonmanagement activities at fixed locations outside their home also 

does not disqualify their home office from being their principal place of business. Taylor meets all the qualifications, 

including principal place of business, so the expenses 

(subject to certain limitations, explained later) can be deducted for the business use of the home.

More Than One Trade or Business

The same home office can be the principal place of business for two or more separate business activities. 

Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. You must use the home office exclusively and 

regularly for one or more of the following purposes.

• As the principal place of business for one or more of 

your trades or businesses.

• As a place to meet or deal with patients, clients, or 

customers in the normal course of one or more of your 

trades or businesses.

• If your home office is a separate structure, in connection with one or more of your trades or businesses.

You can use your home office for more than one trade 

or business activity, but you cannot use it for any activities 

that are not related to a trade or business.

Place To Meet Patients, Clients, or 

Customers

If you meet or deal with patients, clients, or customers in 

your home in the normal course of your business, even 

though you also carry on business at another location, you 

can deduct your expenses for the part of your home used 

exclusively and regularly for business if you meet both the 

following tests.

• You physically meet with patients, clients, or customers on your premises.

• Their use of your home is substantial and integral to 

the conduct of your business.

Doctors, dentists, attorneys, and other professionals 

who maintain offices in their homes will generally meet 

this requirement.

Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the 

business use of your home.

The part of your home you use exclusively and regularly 

to meet patients, clients, or customers does not have to be 

your principal place of business.

Publication 587 (2023) 5
Example. Sam, a self-employed attorney, works 3 

days a week in their office, then works 2 days a week at 

home, in a home office used only for business. Sam regularly meets clients there. The home office qualifies for a 

business deduction because Sam meets clients there in 

the normal course of their business.

Separate Structure

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 

structure does not have to be your principal place of business or a place where you meet patients, clients, or customers.

Example. Bobbie operates a floral shop in town. Bobbie grows the plants for their shop in a greenhouse located at home. Bobbie uses the greenhouse exclusively and 

regularly for their business, so Bobbie can deduct the expenses for its use (subject to certain limitations, described 

later).

Figuring the Deduction

After you determine that you meet the tests under Qualifying for a Deduction, you can begin to figure how much you 

can deduct. When figuring the amount you can deduct for 

the business use of your home, you will use either your actual expenses or a simplified method.

Electing to use the simplified method. The simplified 

method is an alternative to the calculation, allocation, and 

substantiation of actual expenses. You choose whether or 

not to figure your deduction using the simplified method 

each tax year. See Using the Simplified Method, later.

Using Actual Expenses

If you do not or cannot elect to use the simplified method 

for a home, you will figure your deduction for that home 

using your actual expenses. You will also need to figure 

the percentage of your home used for business and the 

limit on the deduction.

If you are a partner or you use your home in your farming business and you file Schedule F (Form 1040), you 

can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, 

to help you figure your deduction. If you use your home in 

a trade or business and you file Schedule C (Form 1040), 

you will use Form 8829 to figure your deduction.

Part-year use. You cannot deduct expenses for the business use of your home incurred during any part of the year 

you did not use your home for business purposes. For example, if you begin using part of your home for business 

on July 1, and you meet all the tests from that date until 

the end of the year, consider only your expenses for the 

last half of the year in figuring your allowable deduction.

Expenses related to tax-exempt income. Generally, 

you cannot deduct expenses that are related to tax-exempt allowances. However, if you receive a tax-exempt 

parsonage allowance or a tax-exempt military allowance, 

your expenses for mortgage interest and real estate taxes 

are deductible under the normal rules. No deduction is allowed for other expenses related to the tax-exempt allowance.

If your housing is provided free of charge and the value 

of the housing is tax exempt, you cannot deduct the rental 

value of any portion of the housing.

Actual Expenses

You must divide the expenses of operating your home between personal and business use. The part of a home operating expense you can use to figure your deduction depends on both of the following.

• Whether the expense is direct, indirect, or unrelated.

• The percentage of your home used for business.

Table 1 describes the types of expenses you may have 

and the extent to which they are deductible.

Table 1. Types of Expenses

Expense Description Deductibility

Direct Expenses only for 

the business part 

of your home.

Deductible in full.*

Examples: 

Painting or repairs 

only in the area 

used for business.

Exception:

May be only partially 

deductible in a daycare

facility. See Daycare

Facility, later.

Indirect Expenses for 

keeping up

and running your 

entire home.

Deductible based on the 

percentage of your home 

used for business.*

Examples: 

Insurance,

utilities, and 

general repairs.

Unrelated Expenses only for 

the parts of your 

home not used 

for business.

Not deductible.

Examples: 

Lawn care or painting 

a room not used 

for business.

*Subject to the deduction limit, discussed later.

Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses.

Certain expenses are deductible to the extent they 

would have been deductible as an itemized deduction on 

your Schedule A or, if claiming the standard deduction, 

would have increased your standard deduction had you 

not used your home for business. If the expense is 

TIP

6 Publication 587 (2023)
indirect, use the business percentage of these expenses 

to figure how much to include in your total business-use-of-the-home deduction. If you are itemizing your 

deductions on Schedule A (Form 1040), these expenses 

include the following.

• Real estate taxes.

• Home mortgage interest.

• Casualty losses attributable to a federally declared 

disaster.

If you are claiming the standard deduction, these expenses only include net qualified disaster losses that increase 

your standard deduction.

See the Instructions for the Worksheet To Figure the 

Deduction for Business Use of Your Home, later in this 

publication, or the Instructions for Form 8829 for more information about figuring and deducting the business part 

of these otherwise allowable expenses. For more information about deducting real estate taxes, see Pub. 530, Tax 

Information for Homeowners. For more information about 

deducting home mortgage interest, see Pub. 936, Home 

Mortgage Interest Deduction. For more information about 

deducting casualty losses, see Pub. 547, Casualties, Disasters, and Thefts.

Other expenses are deductible only if you use your 

home for business. If the expense is indirect, use the business percentage of these expenses to figure how much to 

include in your total business-use-of-the-home deduction. 

These expenses generally include (but are not limited to) 

the following.

• Casualty losses not attributable to a federally declared 

disaster.

• Depreciation (discussed under Depreciating Your 

Home, later).

• Insurance.

• Rent paid for the use of property you do not own but 

use in your trade or business.

• Repairs.

• Security system.

• Utilities and services. (But see Telephone, later, for different rules that apply to telephone expenses.)

Insurance. You can deduct the cost of insurance that 

covers the business part of your home. However, if your 

insurance premium gives you coverage for a period that 

extends past the end of your tax year, you can deduct only 

the business percentage of the part of the premium that 

gives you coverage for your tax year. You can deduct the 

business percentage of the part that applies to the following year in that year.

Rent. If you rent the home you occupy and meet the requirements for business use of the home, you can deduct 

part of the rent you pay. To figure your deduction, multiply 

your rent payments by the percentage of your home used 

for business.

If you own your home, you cannot deduct the fair rental 

value of your home. However, see Depreciating Your 

Home, later.

Repairs. The cost of repairs that relate to your business, 

including labor (other than your own labor), is a deductible 

expense. For example, a furnace repair benefits the entire 

home. If you use 10% of your home for business, you can 

deduct 10% of the cost of the furnace repair.

Repairs keep your home in good working order over its 

useful life. Examples of common repairs are patching 

walls and floors, painting, wallpapering, repairing roofs 

and gutters, and mending leaks. However, repairs are 

sometimes treated as a permanent improvement and are 

not deductible. See Permanent improvements, later, under 

Depreciating Your Home.

Security system. If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. You can also take a 

depreciation deduction for the part of the cost of the security system relating to the business use of your home.

Utilities and services. Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning 

services, are primarily personal expenses. However, if you 

use part of your home for business, you can deduct the 

business part of these expenses. Generally, the business 

percentage for utilities is the same as the percentage of 

your home used for business.

Telephone. The basic local telephone service charge, 

including taxes, for the first telephone landline into your 

home is a nondeductible personal expense. However, 

charges for business long-distance phone calls on that 

line, as well as the cost of a second line into your home 

used exclusively for business, are deductible business expenses. Do not include these expenses as a cost of using 

your home for business. Deduct these charges separately 

on the appropriate form or schedule. For example, if you 

file Schedule C (Form 1040), deduct these expenses on 

line 25, Utilities (instead of line 30, Expenses for business 

use of your home).

Depreciating Your Home

If you own your home and qualify to deduct expenses for 

its business use, you can claim a deduction for depreciation. Depreciation is an allowance for the wear and tear on 

the part of your home used for business. You cannot depreciate the cost or value of the land. You recover its cost 

when you sell or otherwise dispose of the property.

Before you figure your depreciation deduction, you 

need to know the following information.

• The month and year you started using your home for 

business.

• The adjusted basis and fair market value of your home 

(excluding land) at the time you began using it for 

business.

Publication 587 (2023) 7
• The cost of any improvements before and after you 

began using the property for business.

• The percentage of your home used for business. See 

Business Percentage, later.

Adjusted basis defined. The adjusted basis of your 

home is generally its cost, plus the cost of any permanent 

improvements you made to it, minus any casualty losses 

or depreciation deducted in earlier tax years. For a discussion of adjusted basis, see Pub. 551, Basis of Assets.

Permanent improvements. A permanent improvement increases the value of property, adds to its life, or 

gives it a new or different use. Examples of improvements 

are replacing electric wiring or plumbing, adding a new 

roof or addition, paneling, or remodeling.

You must carefully distinguish between repairs and improvements. See Repairs, earlier, under Actual Expenses. 

You must also keep accurate records of these expenses. 

These records will help you decide whether an expense is 

a deductible or a capital (added to the basis) expense. 

However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an 

improvement.

Example. You buy an older home and fix up two rooms 

as a beauty salon. You patch the plaster on the ceilings 

and walls, paint, repair the floor, install an outside door, 

and install new wiring, plumbing, and other equipment. 

Normally, the patching, painting, and floor work are repairs 

and the other expenses are permanent improvements. 

However, because the work gives your property a new 

use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. You 

cannot deduct any portion of it as a repair expense.

Adjusting for depreciation deducted in earlier 

years. Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax 

returns under the method of depreciation you properly selected. If you deducted less depreciation than you could 

have under the method you selected, decrease the basis 

by the amount you could have deducted under that 

method. If you did not deduct any depreciation, decrease 

the basis by the amount you could have deducted.

If you deducted more depreciation than you should 

have, decrease your basis by the amount you should have 

deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any 

year.

If you deducted the incorrect amount of depreciation, 

see Pub. 946, How To Depreciate Property.

Fair market value defined. The fair market value of your 

home is the price at which the property would change 

hands between a buyer and a seller, neither having to buy 

or sell, and both having reasonable knowledge of all necessary facts. Sales of similar property, on or about the 

date you begin using your home for business, may be 

helpful in determining the property's fair market value.

Figuring the depreciation deduction for the current 

year. If you began using your home for business before 

2023, continue to use the same depreciation method you 

used in past tax years. However, if you figured your deduction for business use of the home using the simplified 

method in a prior year, you will need to use the optional 

depreciation table for modified accelerated cost recovery 

system (MACRS) property. See Pub. 946 for the optional 

depreciation tables. For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 

I.R.B. 478, available at IRS.gov/irb/

2013-06_IRB#RP-2013-13.

If you began using your home for business for the first 

time in 2023, depreciate the business part as nonresidential real property under MACRS. Under MACRS, nonresidential real property is depreciated using the straight line 

method over 39 years. For more information on MACRS 

and other methods of depreciation, see Pub. 946.

To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). The depreciable basis is figured 

by multiplying the percentage of your home used for business by the smaller of the following.

• The adjusted basis of your home (excluding land) on 

the date you began using your home for business.

• The fair market value of your home (excluding land) on 

the date you began using your home for business.

Depreciation table. If 2023 was the first year you 

used your home for business, you can figure your 2023 

depreciation for the business part of your home by using 

the appropriate percentage from the following table.

MACRS Percentage Table for 

39-Year Nonresidential Real 

Property

Table 2. 

Month First Used for Business Percentage To Use

1 2.461%

2 2.247%

3 2.033%

4 1.819%

5 1.605%

6 1.391%

7 1.177%

8 0.963%

9 0.749%

10 0.535%

11 0.321%

12 0.107%

Multiply the depreciable basis of the business part of 

your home by the percentage from the table for the first 

month you use your home for business. See Pub. 946 for 

the percentages for the remaining tax years of the recovery period.

Example. In May, Frankie began to use one room at 

home exclusively and regularly to meet clients. This room 

is 8% of the square footage of the home. Frankie bought 

their home in 2008 for $125,000. Frankie determined from 

8 Publication 587 (2023)
the property tax records that the adjusted basis in the 

house (exclusive of land) is $115,000. In May, the house 

had a fair market value of $165,000. Frankie multiplies the 

adjusted basis of $115,000 (which is less than the fair 

market value) by 8%. The result is $9,200, the depreciable 

basis for the business part of the house.

Frankie files their return based on the calendar year. 

May is the fifth month of this tax year. Frankie multiplies 

the depreciable basis of $9,200 by 1.605% (0.01605), the 

percentage from the table for the fifth month. Frankie’s depreciation deduction is $147.66.

Depreciating permanent improvements. Add the costs 

of permanent improvements made before you began using your home for business to the basis of your property. 

Depreciate these costs as part of the cost of your home, 

as explained earlier. The costs of improvements made after you begin using your home for business (that affect the 

business part of your home, such as a new roof) are depreciated separately. Multiply the cost of the improvement 

by the business-use percentage and depreciate the result 

over the recovery period that would apply to your home if 

you began using it for business at the same time as the 

improvement. For improvements made this year, the recovery period is 39 years. For the percentage to use for 

the first year, see Table 2. For more information on recovery periods, see Pub. 946.

Business Percentage

To find the business percentage, compare the size of the 

part of your home that you use for business to your whole 

house. Use the resulting percentage to figure the business 

part of the expenses for operating your entire home.

You can use any reasonable method to determine the 

business percentage. The following are two commonly 

used methods for figuring the percentage.

1. Divide the area (length multiplied by the width) used 

for business by the total area of your home.

2. If the rooms in your home are all about the same size, 

you can divide the number of rooms used for business 

by the total number of rooms in your home.

Example 1. 

• Your office is 240 square feet (12 feet × 20 feet).

• Your home is 1,200 square feet.

• Your office is 20% (240 ÷ 1,200) of the total area of 

your home.

• Your business percentage is 20%.

Example 2. 

• You use one room in your home for business.

• Your home has 10 rooms, all about equal size.

• Your office is 10% (1 ÷ 10) of the total area of your 

home.

• Your business percentage is 10%.

Use lines 1–7 of Form 8829, or lines 1–3 on the 

Worksheet To Figure the Deduction for Business 

Use of Your Home (near the end of this publication) to figure your business percentage.

Deduction Limit

If your gross income from the business use of your home 

equals or exceeds your total business expenses (including 

depreciation), you can deduct all your business expenses 

related to the use of your home.

If your gross income from the business use of your 

home is less than your total business expenses, your deduction for certain expenses for the business use of your 

home is limited.

Your deduction of otherwise nondeductible expenses, 

such as insurance, utilities, and depreciation of your home 

(with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from 

the business use of your home minus the sum of the following.

1. The business part of expenses you could deduct even 

if you did not use your home for business (such as 

mortgage interest, real estate taxes, and casualty losses attributable to a federally declared disaster if you 

itemize deductions on Schedule A (Form 1040) or net 

qualified disaster losses if you claim the standard deduction).

2. The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the 

use of the home itself.

If you are self-employed, do not include in (2) above your 

deduction for one-half of your self-employment tax.

Carryover of unallowed expenses. If your business expenses related to the home are greater than the current 

year's limit, you can carry over the excess to the next year 

in which you use actual expenses. They are subject to the 

deduction limit for that year, whether or not you live in the 

same home during that year.

Figuring the deduction limit and carryover. If you are 

a partner or you file Schedule F (Form 1040), use the 

Worksheet To Figure the Deduction for Business Use of 

Your Home, near the end of this publication. If you file 

Schedule C (Form 1040), figure your deduction limit and 

carryover on Form 8829.

Example. You meet the requirements for deducting expenses for the business use of your home. You use 20% 

of your home for business. You are itemizing your deductions on Schedule A (Form 1040) and your home mortgage interest and total state and local taxes would not be 

limited on your Schedule A if you had not used your home 

for business. In 2023, your business expenses and the expenses for the business use of your home are deducted 

from your gross income in the following order.

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Publication 587 (2023) 9
Gross income from business ................... $6,000

Minus:

Deductible mortgage interest

and real estate taxes (20%) ................. 3,000

Business expenses not related to the use of your home 

(100%) (business phone, supplies, and depreciation on 

equipment) ............................ 2,000

Deduction limit ........................... $1,000

Minus other expenses allocable to business use of home:

Maintenance, insurance, and utilities (20%) ........ 800

Depreciation allowed (20%) ................. 200

Other expenses up to the deduction limit ........... $1,000

Depreciation carryover to 2024 ($1,600 − $200) 

(subject to deduction limit in 2024) ............... $1,400

You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). You 

can also deduct all of your business expenses not related 

to the use of your home ($2,000). Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is 

less than the $1,000 deduction limit. Your deduction for 

depreciation for the business use of your home is limited 

to $200 ($1,000 minus $800) because of the deduction 

limit. You can carry over the $1,400 balance and add it to 

your depreciation for 2024, subject to your deduction limit 

in 2024.

More than one place of business. If part of the gross 

income from your trade or business is from the business 

use of part of your home and part is from a place other 

than your home, you must determine the part of your gross 

income from the business use of your home before you 

figure the deduction limit. In making this determination, 

consider the time you spend at each location, the business investment in each location, and any other relevant 

facts and circumstances.

If your home office qualifies as your principal 

place of business, you can deduct your daily 

transportation costs between your home and another work location in the same trade or business. For 

more information on transportation costs, see Pub. 463, 

Travel, Gift, and Car Expenses.

Using the Simplified Method

The simplified method is an alternative to the calculation, 

allocation, and substantiation of actual expenses. In most 

cases, you will figure your deduction by multiplying $5, the 

prescribed rate, by the area of your home used for a qualified business use. The area you use to figure your deduction is limited to 300 square feet. See Simplified Amount, 

later, for information about figuring the amount of the deduction.

For more information about the simplified method, see 

Revenue Procedure 2013-13, 2013-06 I.R.B. 478, available at IRS.gov/irb/2013-06_IRB#RP-2013-13.

Actual expenses and depreciation of your home. If 

you elect to use the simplified method, you cannot deduct 

any actual expenses for the business except for business 

expenses that are not related to the use of the home. You 

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also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for 

the portion of the home that is used for a qualified business use. The depreciation deduction allowable for that 

portion of the home is deemed to be zero for a year you 

use the simplified method. If you figure your deduction for 

business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional 

depreciation table for MACRS to figure your depreciation.

More information. For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I.R.B. 478, available at 

IRS.gov/irb/2013-06_IRB#RP-2013-13. See Pub. 946 for 

the optional depreciation tables.

Although you cannot deduct any depreciation or 

section 179 expense for the portion of your home 

used for a qualified business use, you may still 

claim depreciation or the section 179 expense deduction 

on other assets used in the business (for example, furniture and equipment).

Expenses deductible without regard to business use. 

When using the simplified method, treat as personal expenses your mortgage interest, real estate taxes, and 

casualty losses. If you also rent part of your home, you 

must still allocate these expenses between rental use and 

personal use (for this purpose, personal use includes 

business use reported using the simplified method).

No deduction of carryover of actual expenses. If you 

used actual expenses to figure your deduction for business use of the home in a prior year and your deduction 

was limited, you cannot deduct the disallowed amount 

carried over from the prior year during a year you figure 

your deduction using the simplified method. Instead, you 

will continue to carry over the disallowed amount to the 

next year that you use actual expenses to figure your deduction.

Electing the Simplified Method

You choose whether or not to figure your deduction using 

the simplified method each tax year. Make the election for 

a home by using the simplified method to figure the deduction for the qualified business use of that home on a 

timely filed, original federal income tax return. An election 

for a tax year, once made, is irrevocable. A change from 

using the simplified method in one year to actual expenses in a succeeding tax year, or vice versa, is not a 

change in method of accounting and does not require the 

consent of the Commissioner.

Shared use. If you share your home with someone else 

who also uses the home in a business that qualifies for 

this deduction, each of you makes your own election.

More than one qualified business use. If you conduct 

more than one business that qualifies for this deduction in 

your home, your election to use the simplified method applies to all your qualified business uses of that home.

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10 Publication 587 (2023)
More than one home. If you used more than one home 

in your business during the year (for example, you moved 

during the year), you can elect to use the simplified 

method for only one of the homes. You must figure the deduction for any other home using actual expenses.

Simplified Amount

Your deduction for the qualified business use of a home is 

the sum of each amount you figure for a separate qualified 

business use of your home. To figure your deduction for 

the business use of a home using the simplified method, 

you will need to know the following information for each 

qualified business use of the home.

• The allowable area of your home used in conducting 

the business. If you did not conduct the business for 

the entire year in the home or the area changed during 

the year, you will need to know the allowable area you 

used and the number of days you conducted the business for each month.

• The gross income from the business use of your 

home.

• The amount of the business expenses that are not related to the use of your home.

• If the qualified business use is for a daycare facility 

that uses space in your home on a regular (but not exclusive) basis, you will need to know the percentage of 

time that part of your home is used for daycare.

To figure the amount you can deduct for qualified business use of your home using the simplified method, follow 

these three steps.

1. Multiply the allowable area by $5 (or less than $5 if the 

qualified business use is for a daycare that uses 

space in your home on a regular, but not exclusive, 

basis). See Allowable area and Space used regularly 

for daycare, later.

2. Subtract the expenses from the business that are not 

related to the use of the home from the gross income 

related to the business use of the home. If these expenses are greater than the gross income from the 

business use of the home, then you cannot take a deduction for this business use of the home. See Gross 

income limitation, later.

3. Take the smaller of the amounts from (1) and (2). This 

is the amount you can deduct for this qualified business use of your home using the simplified method.

If you are a partner or you use your home in your farming business and file Schedule F (Form 1040), you can 

use the Simplified Method Worksheet, near the end of this 

publication, to help you figure your deduction. If you use 

your home in a trade or business and you file Schedule C 

(Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction.

Allowable area. In most cases, the allowable area is the 

smaller of the actual area (in square feet) of your home 

used in conducting the business and 300 square feet. 

Your allowable area may be smaller if you conducted the 

business as a qualified joint venture with your spouse, the 

area used by the business was shared with another qualified business use, you used the home for the business for 

only part of the year, or the area used by the business 

changed during the year. You can use the Area Adjustment Worksheet (for simplified method), near the end of 

this publication, to help you figure your allowable area for 

a qualified business use.

Area used by a qualified joint venture. If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the 

business use separately. Split the actual area used in conducting business between you and your spouse in the 

same manner you split your other tax attributes. Then, 

each spouse will figure the allowable area separately. For 

more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C.

Shared use. If you share your home with someone 

else who uses the home to conduct business that also 

qualifies for this deduction, you may not include the same 

square feet to figure your deduction as the other person. 

You must allocate the shared space between you and the 

other person in a reasonable manner.

Example. Lindsey and Tracy are roommates. Lindsey 

uses 300 square feet of their home for a qualified business 

use. Tracy uses 200 square feet of their home for a separate qualified business use. Lindsey and Tracy both share 

100 square feet for their respective qualified businesses in 

their mutual home. In addition to the portion that they do 

not share, Lindsey and Tracy can both claim 50 of the 100 

square feet or divide the 100 square feet between them in 

any reasonable manner. If divided evenly, Lindsey could 

claim 250 square feet using the simplified method and 

Tracy could claim 150 square feet.

More than one qualified business use. If you conduct more than one business qualifying for the deduction, 

you are limited to a maximum of 300 square feet for all of 

the businesses. Allocate the actual square footage used 

(up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. However, do 

not allocate more square feet to a qualified business use 

than you actually use for that business.

Rental use. The simplified method does not apply to 

rental use. A rental use that qualifies for the deduction 

must be figured using actual expenses. If the rental use 

and a qualified business use share the same area, you will 

have to allocate the actual area used between the two 

uses. You cannot use the same area to figure a deduction 

for the qualified business use as you are using to figure 

the deduction for the rental use.

Part-year use or area changes (for simplified 

method only). If your qualified business use was for a 

portion of the year (for example, a seasonal business, a 

business that begins during the year, or you moved during 

the year) or you changed the square footage of your qualified business use, your deduction is limited to the average 

Publication 587 (2023) 11
monthly allowable square footage. You calculate the average monthly allowable square footage by adding the 

amount of allowable square feet you used in each month 

and dividing the sum by 12. When determining the average monthly allowable square footage, you cannot take 

more than 300 square feet into account for any 1 month. 

Additionally, if your qualified business use was less than 

15 days in a month, you must use -0- for that month.

Example 1. Jay files their federal income tax return on 

a calendar year basis. On July 20, Jay began using 420 

square feet at their home for a qualified business use. Jay 

continued to use 420 square feet of their home until the 

end of the year. The average monthly allowable square 

footage is 125 square feet, which is figured using 300 

square feet for each month, August through December, 

divided by the number of months in the year ((0 + 0 + 0 + 0 

+ 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12).

Example 2. Jessie files their federal tax return on a 

calendar year basis. On April 20, Jessie began using 100 

square feet of their home for a qualified business use. On 

August 5, Jessie expanded the area of qualified use to 

330 square feet. Jessie continued to use the 330 square 

feet until the end of the year. The average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square 

feet for August through December, divided by the number 

of months in the year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 

300 + 300 + 300 + 300 + 300)/12).

Example 3. Guadalupe files their income tax return on 

a calendar year basis. From January 1 through July 16, 

Guadalupe used 300 square feet of their home for a qualified business use. On July 17, Guadalupe moved to a new 

home and immediately began using 200 square feet for 

the same qualified business use. While preparing their tax 

return, Guadalupe decided to use the simplified method to 

deduct the qualified business use of the first home and 

files a Form 8829 to deduct the qualified business use of 

the second home. The average monthly allowable square 

footage is 175 square feet, which is figured using 300 

square feet for January through July, divided by the number of months in the year ((300 + 300 + 300 + 300 + 300 + 

300 + 300 + 0 + 0 + 0 + 0 + 0)/12).

If you moved during the year, your average allowable square footage will generally be less than 300.

Gross income limitation. Your deduction for business 

use of the home is limited to an amount equal to the gross 

income derived from the qualified business use of the 

home reduced by the business deductions that are unrelated to the use of your home. If the business deductions 

that are unrelated to the use of your home are greater than 

the gross income derived from the qualified business use 

of your home, then you cannot take a deduction for this 

qualified business use of your home.

Business expenses not related to use of the home. 

These expenses relate to the business activity in the 

home, but not to the use of the home itself. You can still 

CAUTION

!

deduct business expenses that are unrelated to the use of 

the home. See Where To Deduct, later. Examples of business expenses that are unrelated to the use of the home 

are advertising, wages, supplies, dues, and depreciation 

for equipment.

Space used regularly for daycare. If you do not use the 

area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) 

before figuring your deduction. The reduced rate will equal 

the prescribed rate times a fraction. The numerator of the 

fraction is the number of hours that the space was used 

during the year for daycare and the denominator is the total number of hours during the year that the space was 

available for all uses. You can use the Daycare Facility 

Worksheet (for simplified method), near the end of this 

publication, to help you figure the reduced rate.

If you used at least 300 square feet for daycare 

regularly and exclusively during the year, then you 

do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet.

Daycare Facility

If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for 

that part of your home even if you use the same space for 

nonbusiness purposes. To qualify for this exception to the 

exclusive use rule, you must meet both of the following requirements.

• You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons 

who are physically or mentally unable to care for themselves.

• You must have applied for, been granted, or be exempt from having a license, certification, registration, 

or approval as a daycare center or as a family or group 

daycare home under state law. You do not meet this 

requirement if your application was rejected or your license or other authorization was revoked.

Figuring the deduction. If you elect to use the simplified 

method for your home, figure your deduction as described 

earlier in Using the Simplified Method under Figuring the 

Deduction.

If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, 

figure what part is used for daycare, as explained in Business Percentage, earlier, under Figuring the Deduction. If 

you also use that part exclusively for daycare, deduct all 

the allocable expenses, subject to the deduction limit, as 

explained earlier.

If the use of part of your home as a daycare facility is 

regular, but not exclusive, you must figure the percentage 

of time that part of your home is used for daycare. A room 

that is available for use throughout each business day and 

that you regularly use in your business is considered to be 

used for daycare throughout each business day. You do 

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12 Publication 587 (2023)
not have to keep records to show the specific hours the 

area was used for business. You can use the area occasionally for personal reasons. However, a room you use 

only occasionally for business does not qualify for the deduction.

To find the percentage of time you actually use 

your home for business, compare the total time 

used for business to the total time that part of your 

home can be used for all purposes. You can compare the 

hours of business use in a week with the number of hours 

in a week (168). Or, you can compare the hours of business use for the year with the number of hours in the year 

(8,760 in 2023). If you started or stopped using your home 

for daycare in 2023, you must prorate the number of hours 

based on the number of days the home was available for 

daycare.

Example 1. Rene used the basement at home to operate a daycare business for children. Rene figures the 

business percentage of the basement as follows.

Square footage of the basement

Square footage of the home =

1,600

3,200 = 50%

Rene used the basement for daycare an average of 12 

hours a day, 5 days a week, for 50 weeks a year. During 

the other 12 hours a day, the family could use the basement. Rene figures the percentage of time the basement 

was used for daycare as follows.

Number of hours used for daycare (12 x 5 x 50)

Total number of hours in the year (24 x 365) = 

3,000

8,760 = 34.25%

Rene can deduct 34.25% of any direct expenses for the 

basement. However, because Rene’s indirect expenses 

are for the entire house, Rene can deduct only 17.13% of 

the indirect expenses. Rene figures the percentage for 

their indirect expenses as follows.

Business percentage of the basement ............. 50%

Multiplied by: Percentage of time used for daycare ..... × 34.25%

Percentage for indirect expenses ................ 17.13%

Rene completes Form 8829, Part I, figuring the percentage of the home used for business, including the percentage of time the basement was used.

In Part II, Rene figures their deductible expenses. Rene 

uses the following information to complete Part II.

Gross income from the daycare business ........... $50,000

Expenses not related to the business use of the home ... $25,000

Tentative profit ............................ $25,000

Rent .................................. $8,400

Utilities ................................ $850

Painting the basement ....................... $500

Rene enters their tentative profit, $25,000, on line 8. 

(This figure is the same as the amount on line 29 of their 

Schedule C (Form 1040)).

The expenses they paid for rent and utilities relate to 

their entire home. Therefore, Rene enters the amount paid 

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for rent on line 19, column (b), and the amount paid for 

utilities on line 21, column (b). Rene shows the total of 

these expenses on line 23, column (b). For line 24, Rene 

multiplies the amount on line 23, column (b), by the percentage on line 7 and enters the result, $1,585.

Rene paid $500 to have the basement painted. The 

painting is a direct expense. However, because the basement was not used exclusively for daycare, Rene must 

multiply $500 by the percentage of time the basement was 

used for daycare (34.25% – line 6). Rene then enters $171 

(34.25% × $500) on line 20, column (a). Rene then adds 

line 23, column (a), and line 24 and enters $1,756 ($171 + 

$1,585) on line 26. This is less than Rene’s deduction limit 

(line 15), so Rene can deduct the entire amount. Rene follows the instructions to complete the rest of Part II and enters $1,756 on lines 34 and 36. Then Rene carries the 

$1,756 to line 30 of their Schedule C (Form 1040).

Example 2. Assume the same facts as in Example 1 

except that Rene also has another room that was available 

each business day for children to take naps in. Although 

Rene did not keep a record of the number of hours the 

room was used for naps, it was used for part of each business day. Since the room was available for business use 

during regular operating hours each business day and 

was used regularly in the business, it is considered used 

for daycare throughout each business day. The basement 

and room are 60% of the total area of the home. In figuring 

Rene’s expenses, 34.25% of any direct expenses for the 

basement and room are deductible. In addition, 20.55% 

(34.25% × 60%) of their indirect expenses are deductible.

Example 3. Assume the same facts as in Example 1 

except that Rene stopped using the home for a daycare 

facility on June 24, 2023. Rene used the basement for 

daycare an average of 12 hours a day, 5 days a week, but 

for only 25 weeks of the year. During the other 12 hours a 

day, Rene’s family could still use the basement. Rene figures the percentage of time the basement was used for 

business as follows.

Number of hours used for daycare (12 x 5 x 25)

Total number of hours during period used (24 x 

175)

= 

1,500

4,200 = 35.71%

Rene can deduct 35.71% of any direct expenses for the 

basement. However, because the indirect expenses are 

for the entire house, Rene can deduct only 17.86% of the 

indirect expenses. Rene then figures the percentage for 

their indirect expenses as follows.

Business percentage of the basement ............. 50%

Multiplied by: Percentage of time used for daycare ..... × 35.71%

Percentage for indirect expenses ................ 17.86%

Meals. If you provide food for your daycare recipients, do 

not include the expense as a cost of using your home for 

business. Claim it as a separate deduction on your Schedule C (Form 1040). You can never deduct the cost of food 

consumed by you or your family. You can deduct as a 

business expense 100% of the actual cost of food 

Publication 587 (2023) 13
consumed by your daycare recipients (see Standard meal 

and snack rates, later, for an optional method for eligible 

children) and generally only 50% of the cost of food consumed by your employees. For more information on meals 

that meet these requirements, see Meals in chapter 2 of 

Pub. 15-B, Employer's Tax Guide to Fringe Benefits.

If you deduct the actual cost of food for your daycare 

business, keep a separate record (with receipts) of your 

family's food costs.

Reimbursements you receive from a sponsor under the 

Child and Adult Care Food Program of the Department of 

Agriculture are taxable only to the extent they exceed your 

expenses for food for eligible children. If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). If 

your food expenses are greater than the reimbursements, 

show the difference as an expense in Part V of Schedule C (Form 1040). Do not include payments or expenses 

for your own children if they are eligible for the program. 

Follow this procedure even if you receive a Form 

1099-MISC, Miscellaneous Information, reporting a payment from the sponsor.

Standard meal and snack rates. If you qualify as a 

family daycare provider, you can use the standard meal 

and snack rates, instead of actual costs, to compute the 

deductible cost of meals and snacks provided to eligible 

children. For these purposes:

• A family daycare provider is a person engaged in the 

business of providing family daycare;

• Family daycare is childcare provided to eligible children in the home of the family daycare provider. The 

care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours 

each day; and

• Eligible children are minor children receiving family 

daycare in the home of the family daycare provider. Eligible children do not include children who are 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 children do not 

include children who receive daycare services for personal reasons of the provider. For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child.

You can compute the deductible cost of each meal and 

snack you actually purchased and served to an eligible 

child during the time period you provided family daycare 

using the standard meal and snack rates shown in Table 3. You can use the standard meal and snack rates for 

a maximum of one breakfast, one lunch, one dinner, and 

three snacks per eligible child per day. If you receive reimbursement for a particular meal or snack, you can deduct 

only the portion of the applicable standard meal or snack 

rate that is more than the amount of the reimbursement.

You can use either the standard meal and snack rates 

or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. If you choose to use the standard meal 

and snack rates for a particular tax year, you must use the 

rates for all your deductible food costs for eligible children 

during that tax year. However, if you use the standard 

meal and snack rates in any tax year, you can use actual 

costs to compute the deductible cost of food in any other 

tax year.

If you use the standard meal and snack rates, you must 

maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. The records kept should include the name of 

each child, dates and hours of attendance in the daycare, 

and the type and quantity of meals and snacks served. 

This information can be recorded in a log similar to the 

one shown in Exhibit A, near the end of this publication.

The standard meal and snack rates include beverages, 

but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper 

products, or utensils. These expenses can be claimed as 

a separate deduction on your Schedule C (Form 1040).

Standard Meal and Snack Rates1

Location of 

Family 

Daycare 

Provider

Breakfast Lunch Dinner Snack

States other 

than Alaska 

and Hawaii

$1.66 $3.04 $3.04 $0.97

Alaska $2.59 $4.87 $4.87 $1.52

Hawaii $1.91 $3.55 $3.55 $1.12

1

 The applicable rates for 2023 are the Child and Adult Care 

Food Program reimbursement rates in effect on December 31, 

2022.

Sale or Exchange of

Your Home

If you sell or exchange your home, you may be able to exclude up to $250,000 ($500,000 for certain married persons filing a joint return) of the gain on the sale or exchange. In most cases, you must meet the ownership and 

use tests. However, even if you meet the ownership and 

use tests, your home sale is not eligible for the exclusion if 

either of the following is true.

• You acquired the property through a like-kind exchange (1031 exchange) during the past 5 years.

• You are subject to the expatriate tax.

Ownership and use tests. The ownership and use tests 

generally require that during the 5-year period ending on 

the date of the sale:

• You owned the home for at least 2 years (ownership 

test), and

Table 3. 

14 Publication 587 (2023)
• You lived in the home as your main home for at least 2 

years (use test). The 2 years of residence can fall anywhere within the 5-year period, and it does not need to 

be a single block of time.

Gain on Sale

If you use property partly as a home and partly for business, the treatment of any gain on the sale varies depending on whether the part of the property used for business 

is part of your home or separate from it.

Part of Home Used for Business

If the part of your property used for business is within your 

home, such as a room used as a home office for a business or rooms used to provide daycare, you do not need 

to allocate gain on the sale of the property between the 

business part of the property and the part used as a 

home. In addition, you do not need to report the sale of the 

business part on Form 4797, Sales of Business Property. 

This is true whether or not you were entitled to claim any 

depreciation. However, you cannot exclude the part of any 

gain equal to any depreciation allowed or allowable after 

May 6, 1997. See Depreciation, later.

Separate Part of Property Used for Business

You may have used part of your property as a home and a 

separate part of it, such as an outbuilding, for business.

Use test not met for business part. You cannot exclude gain on the separate part of your property used for 

business unless you owned and lived in that part of your 

property for at least 2 years during the 5-year period ending 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 

gain on the sale is required. For this purpose, you must allocate the basis of the property and the amount realized 

upon its sale between the business part and the part used 

as a home. You must report the sale of the business part 

on Form 4797.

Use test met for business part (business use in year 

of sale). If you used a separate part of your property for 

business in the year of sale, you should treat the sale of 

the property as the sale of two properties, even if you met 

the use test for the business part. You must report the sale 

of the business part on Form 4797.

To determine the amount to report on Form 4797, you 

must divide your selling price, selling expenses, and basis 

between the part of the property used for business and 

the separate part used as your home. In the same way, if 

you qualify to exclude any of the gain on the business part 

of your property, also divide your maximum exclusion between that part of the property and the separate part used 

as your home.

Excluding gain on the business part of your property. You can generally exclude gain on the part of your 

property used for business if you owned and lived in that 

part as your main home for at least 2 years during the 

5-year period ending on the date of the sale.

Use test met for business part (no business use in 

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 

you use as a home, you do not need to treat the transaction as the sale of two properties. Also, you do not need to 

file Form 4797. You can generally exclude gain on the entire property.

Depreciation

If you were entitled to deduct depreciation on the part of 

your home used for business, you cannot exclude the part 

of the gain equal to any depreciation you deducted (or 

could have deducted) for periods after May 6, 1997. This 

means that when figuring the amount of gain you can exclude, you must reduce the total gain by any depreciation 

allowed or allowable on the part of your home used for 

business after May 6, 1997.

If you can show by adequate records or other evidence 

that the depreciation you actually deducted (the allowed 

depreciation) was less than the amount you were entitled 

to deduct (the allowable depreciation), the amount you 

cannot exclude (and must subtract from your total gain 

when figuring your exclusion) is the amount you actually 

deducted.

You do not have to reduce the gain by any depreciation 

you deducted (or could have deducted) for a separate 

structure for which you cannot exclude the allocable portion of the gain.

Basis Adjustment

If you used any part of your home for business, you must 

adjust the basis of your home for any depreciation that 

was allowable for its business use, even if you did not 

claim it. If you deducted less depreciation than you could 

have under the method you properly selected, you must 

decrease the basis by the amount you could have deducted under that method. If you deducted more depreciation 

than you should have under the method you properly selected, you must decrease the basis by the amount you 

should have deducted, plus the part of the excess deducted that actually decreased your tax liability for any year. 

For more information on reducing the basis of your property for depreciation, see Pub. 551.

Reporting the Sale

Do not report the 2023 sale of your main home on your tax 

return unless:

• You received a Form 1099-S, Proceeds From Real Estate Transactions, for the sale or exchange;

• You have a gain and you do not qualify to exclude all 

of it;

• You have a gain and choose not to exclude it; or

Publication 587 (2023) 15
• You have a loss from the sale that is deductible.

A loss from the sale of your home, or the personal 

part of your home if it was also used for business 

or to produce rental income, is not deductible.

If any of these conditions apply, report the gain or loss 

as explained in the Instructions for Schedule D.

If you used the home for business, you may have to use 

Form 4797 to report the sale of the business part. See the 

Instructions for Form 4797.

More Information

This section covers only the basic rules for the sale or exchange of your home. For more information, see Pub. 523, 

Selling Your Home.

Business Furniture and 

Equipment

This section discusses the depreciation and section 179 

deductions you may be entitled to take for furniture and 

equipment you use in your home for business. These deductions are available whether or not you qualify to deduct 

expenses for the business use of your home.

This section explains the different rules for each of the 

following.

• Listed property.

• Property bought for business use.

• Personal property converted to business use.

Listed Property

If you use certain types of property, called listed property, 

in your home, special rules apply. Listed property includes 

any property of a type generally used for entertainment, 

recreation, and amusement (including photographic, phonographic, and video recording equipment).

More-than-50%-use test. If you bought listed property 

and placed it in service during the year, you must use it 

more than 50% for business to claim a section 179 deduction or an accelerated depreciation deduction.

If your business use of listed property is 50% or less, 

you cannot take a section 179 deduction and you must depreciate the property using the Alternative Depreciation 

System (ADS) (straight line method). For more information 

on ADS, see Pub. 946.

Listed property meets the more-than-50%-use test for 

any year if its qualified business use is more than 50% of 

its total use. You must allocate the use of any item of listed 

property used for more than one purpose during the year 

among its various uses. You cannot use the percentage of 

investment use as part of the percentage of qualified business use to meet the more-than-50%-use test. However, 

you do use the combined total of business and investment 

use to figure your depreciation deduction for the property.

CAUTION

!

Years following the year placed in service. If, in a year 

after you place an item of listed property in service, you 

fail to meet the more-than-50%-use test for that item of 

property, you may be required to do the following.

1. Figure depreciation, beginning with the year you no 

longer use the property more than 50% for business, 

using the straight line method (ADS).

2. Figure any excess depreciation (include any section 

179 deduction on the property in figuring excess depreciation) and add it to:

a. Your gross income, and

b. The adjusted basis of your property.

For more information, see Pub. 946.

Reporting and recordkeeping requirements. If you 

use listed property in your business, you must file Form 

4562 to claim a depreciation or section 179 deduction. 

Begin with Part V, Section A, of that form.

You cannot take any depreciation or section 179 

deduction for the use of listed property unless you 

can prove your business/investment use with adequate records or sufficient evidence to support your own 

statements.

To meet the adequate records requirement, you must 

maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary 

evidence that is sufficient to establish business/investment use. For more information on what records to keep, 

see Pub. 946.

Property Bought for Business Use

If you bought certain property during 2023 to use in your 

business, you can do any one of the following (subject to 

the limits discussed later).

• Elect a section 179 deduction for the full cost of the 

property.

• Depreciate the cost of the property.

• Take part of the cost as a section 179 deduction and 

depreciate the balance.

Section 179 Deduction

You can claim the section 179 deduction for the cost of 

depreciable tangible personal property bought for use in 

your trade or business. You can choose how much (subject to the limit) of the cost you want to deduct under section 179 and how much you want to depreciate. You can 

spread the section 179 deduction over several items of 

property in any way you choose as long as the total does 

not exceed the maximum allowable. You cannot take a 

section 179 deduction for the basis of the business part of 

your home.

You elect the section 179 deduction by completing Part 

I of Form 4562.

RECORDS

16 Publication 587 (2023)
More information. For more information on the section 

179 deduction, qualifying property, the dollar limit, and the 

business income limit, see Pub. 946 and the Instructions 

for Form 4562.

Depreciation

Use Parts II and III of Form 4562 to claim your deduction 

for depreciation on property placed in service during the 

year. Do not include any costs deducted in Part I (section 

179 deduction).

Most business property normally used in a home office 

is either 5-year or 7-year property under MACRS.

• 5-year property includes computers and peripheral 

equipment, typewriters, calculators, adding machines, 

and copiers.

• 7-year property includes office furniture and fixtures 

such as desks, files, and safes.

Under MACRS, you generally use the half-year convention, which allows you to deduct a half-year of depreciation in the first year you use the property in your business. 

If you place more than 40% of your depreciable property 

in service during the last 3 months of your tax year, you 

must use the mid-quarter convention instead of the 

half-year convention.

After you have determined the cost of the depreciable 

property (minus any section 179 deduction and special 

depreciation allowance taken on the property) and 

whether it is 5-year or 7-year property, use the table, 

shown next, to figure your depreciation if the half-year 

convention applies.

MACRS Percentage Table for 5- and 

7-Year Property Using Half-Year 

Convention

Table 4. 

Recovery Year 5-Year Property 7-Year Property

1 20.00% 14.29%

2 32.00% 24.49%

3 19.20% 17.49%

4 11.52% 12.49%

5 11.52%  8.93%

6  5.76%  8.92%

7  8.93%

8  4.46%

See Pub. 946 for a discussion of the mid-quarter convention and for complete MACRS percentage tables.

Example. In June 2023, Kerry bought a desk and 

three chairs for use at their office. The total bill for the furniture was $1,975. The taxable business income for the 

year was $3,000 without any deduction for the office furniture. Kerry can elect to do one of the following.

• Take a section 179 deduction for the full cost of the office furniture.

• Take part of the cost of the furniture as a section 179 

deduction and depreciate the balance.

• Not take the section 179 deduction and depreciate the 

office furniture using its full cost.

The furniture is 7-year property under MACRS. Kerry 

does not take a section 179 deduction. Kerry multiplies 

$1,975 by 14.29% (0.1429) to get the MACRS depreciation deduction of $282.23.

Personal Property Converted to 

Business Use

If you use property in your home office that was used previously for personal purposes, you cannot take a section 

179 deduction for the property.

If you began using the property for personal purposes 

after 1980 and before 1987 and change it to business use 

in 2023, you cannot take a special depreciation allowance 

for the property. However, you can depreciate it. 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 it under MACRS. For 

information on ACRS, see Pub. 534, Depreciating Property Placed in Service Before 1987.

If you began using the property for personal purposes 

after 1986 and change it to business use in 2023, you may 

be able to take a special depreciation allowance for the 

property. You generally depreciate the property under 

MACRS. 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 

before 1981 and change it to business use in 2023, depreciate the property by the straight line or declining balance 

method based on salvage value and useful life.

Recordkeeping

You do not have to use a particular method of recordkeeping, but you must keep records that provide the information needed to figure your deductions for the business use of your home. You should keep 

canceled checks, receipts, and other evidence of expenses you paid.

Your records must show the following information.

• The part of your home you use for business.

• That you use part of your home exclusively and regularly for business as either your principal place of business or as the place where you meet or deal with clients or customers in the normal course of your 

business. However, see the earlier discussion, Exceptions to Exclusive Use under Qualifying for a 

Deduction.

RECORDS

Publication 587 (2023) 17
• The depreciation and expenses for the business part.

You must keep your records for as long as they are important for any tax law. This is usually the later of the following 

dates.

• 3 years from the return due date or the date filed.

• 2 years after the tax was paid.

Keep records to prove your home's depreciable basis. 

This includes records of when and how you acquired your 

home, your original purchase price, any improvements to 

your home, and any depreciation you are allowed because 

you maintained an office in your home. You can keep copies of Forms 8829 or the Worksheet To Figure the Deduction for Business Use of Your Home, found later in this 

publication, as records of depreciation.

For more information on recordkeeping, see Pub. 583, 

Starting a Business and Keeping Records.

Where To Deduct

Deduct expenses for the business use of your home on 

Form 1040 or Form 1040-SR. Where you deduct these expenses on the form depends on whether you are a 

self-employed person or a partner.

Self-Employed Persons

If you use your home in your trade or business and file 

Schedule C (Form 1040), report the entire deduction for 

business use of your home on line 30 of Schedule C 

(Form 1040). Whether you need to complete and attach 

Form 8829 to your return depends on how you figure your 

deduction. See Line 30 in the Instructions for Schedule C 

for more information.

If you use your home in your farming business and file 

Schedule F (Form 1040), report your entire deduction for 

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.

Expenses Deductible Without Regard to a 

Business Connection

Certain expenses related to the use of your home may be 

deducted whether or not you use your home for business. 

These expenses may include some or all of your mortgage interest, real estate taxes, and casualty losses attributable to a federally declared disaster. Where you deduct 

these expenses depends on how you figure your deduction for business use of the home.

Using actual expenses to figure the deduction. In 

general, you will deduct the business portion of these expenses on Schedule C (Form 1040) or Schedule F (Form 

1040) as part of your deduction for business use of your 

home. If you itemize your deductions, you will deduct the 

personal portion of these expenses on Schedule A (Form 

1040).

Home mortgage interest. The business portion of 

your home mortgage interest allowed as a deduction this 

year will be included in the business use of the home deduction you report on Schedule C (Form 1040), line 30, or 

Schedule F (Form 1040), line 32. If you cannot deduct the 

business portion of your home mortgage interest in full 

this year, you will carry over the remaining home mortgage 

interest to a subsequent year in which you use actual expenses to figure your business portion of the home deduction.

If you itemize your deductions on Schedule A (Form 

1040), only include the personal part of your deductible 

mortgage interest on Schedule A (Form 1040), line 8a or 

8b. The personal portion of your home mortgage interest 

will generally be the amount of deductible home mortgage 

interest you figured when treating all home mortgage interest as a personal expense and applying the Schedule A 

(Form 1040) limits on deducting home mortgage interest, 

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 Schedule A. Home 

mortgage interest that exceeds the amount you figured after applying the Schedule A (Form 1040) limits on deducting home mortgage interest is not deductible as a personal expense.

Real estate taxes. You figure the business portion of 

your real estate taxes using Form 8829 (if you file Schedule C (Form 1040)) or the Worksheet To Figure the Deduction for Business Use of Your Home in this publication (if 

you file Schedule F (Form 1040)). The business portion of 

your real estate taxes allowed as a deduction this year will 

be included in the business use of the home deduction 

you report on Schedule C (Form 1040), line 30, or Schedule F (Form 1040), line 32. If you cannot deduct the business portion of your real estate taxes in full this year, you 

will carry over those real estate taxes to a subsequent 

year in which you use actual expenses to figure your business portion of the home deduction.

If you itemize your deductions on Schedule A (Form 

1040), only include the personal part of your real estate 

taxes on Schedule A (Form 1040), line 5b. The personal 

portion of your real estate taxes will generally be the 

amount of real estate taxes you paid for the home 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 Schedule A.

Casualty losses. You will figure the business portion 

of the casualty losses attributable to your home using 

Form 8829 (if you file Schedule C (Form 1040)) or the 

Worksheet To Figure the Deduction for Business Use of 

Your Home in this publication (if you file Schedule F (Form 

1040)). The business portion of your casualty losses allowed as a deduction this year will be reported on line 27 

in Section B of Form 4684. If you cannot deduct the business portion of your casualty losses in full this year, you 

will carry over those losses to a subsequent year in which 

you use actual expenses to figure your business of the 

home deduction.

Only include the personal portion of your casualty losses in Section A of the Form 4684 you attach to your 

18 Publication 587 (2023)
return. If you itemize your deductions on Schedule A 

(Form 1040), you will include the deductible personal portion of the casualty losses attributable to your home figured on line 18 of Form 4684 on line 15 of Schedule A and 

the net qualified disaster losses attributable to your home 

figured on line 15 of Form 4684 on line 16 of Schedule A. 

If you are increasing your standard deduction by a net 

qualified disaster loss, you will add the net qualified disaster loss figured on line 15 of Form 4684 to your standard 

deduction using a Schedule A.

Using the simplified method to figure your deduction. If you use the simplified method to figure your deduction for the business use of a home, your mortgage interest, real estate taxes, and casualty losses are treated 

as personal expenses, and they are subject to any limits 

that apply to deducting personal expenses. No part of any 

of these expenses can be deducted as a business expense on Schedule C (Form 1040) or Schedule F (Form 

1040). Generally, you can only deduct these expenses if 

you itemize your deductions on Schedule A (Form 1040).

Business Expenses for Use of Your Home

Other expenses related to the use of your home may be 

deducted only to the extent they are related to the business use of your home. These expenses include insurance, maintenance, utilities, and depreciation of your 

home. You cannot deduct the personal portion of any of 

these expenses. Where you deduct the business portion 

of these expenses depends on how you figure your deduction for business use of the home.

Using actual expenses to figure your deduction. If 

you file Schedule C (Form 1040), report the other home 

expenses that would not be allowable if you did not use 

your home for business (for example, insurance, maintenance, utilities, and depreciation) on the appropriate lines 

of your Form 8829. If you rent rather than own your home, 

report the rent you paid on line 19 of Form 8829. If these 

expenses exceed the deduction limit, carry the excess 

over to next year. The carryover will be subject to next 

year's deduction limit.

If you file Schedule F (Form 1040), include your otherwise nondeductible expenses (insurance, maintenance, 

utilities, depreciation, etc.) with your total business-use-of-the-home expenses on Schedule F (Form 

1040), line 32. Enter “Business Use of Home” on the dotted line beside the entry. If these expenses exceed the deduction limit, carry the excess over to the next year. The 

carryover will be subject to next year's deduction limit.

Using the simplified method to figure your deduction. You cannot deduct any of these expenses. The simplified method is an alternative to calculating and substantiating these expenses. Figure your deduction using the 

Simplified Method Worksheet.

Business Expenses Not for Use of Your 

Home

No matter how you figure the deduction for business use 

of your home, deduct business expenses that are not for 

the use of your home itself (dues, salaries, supplies, certain telephone expenses, depreciation of equipment, etc.) 

on the appropriate lines of Schedule C (Form 1040) or 

Schedule F (Form 1040). These expenses are not for the 

use of your home, so they are not subject to the deduction 

limit for business use of the home expenses.

Partners

You may be allowed to deduct unreimbursed ordinary and 

necessary expenses you paid on behalf of the partnership 

(including qualified expenses for the business use of your 

home) if you were required to pay these expenses under 

the partnership agreement and they are trade or business 

expenses under section 162.

If you are using actual expenses to figure your deduction for the business use of your home, use the Worksheet 

To Figure the Deduction for Business Use of Your Home, 

later. If you are using the simplified method to figure your 

deduction for the business use of your home, use the Simplified Method Worksheet, later.

Deducting unreimbursed partnership expenses. See 

the following forms and related instructions for information 

about deducting unreimbursed partnership expenses.

• Schedule E (Form 1040), Supplemental Income and 

Loss.

• Schedule SE (Form 1040), Self-Employment Tax.

• Schedule K-1 (Form 1065), Partner's Share of Income, 

Deductions, Credits, etc.

More information. For more information about partners 

and partnerships, see Pub. 541, Partnerships.

Worksheet To Figure the 

Deduction for Business Use of 

Your Home

This worksheet is to be used by taxpayers filing Schedule F (Form 1040) or by partners with certain unreimbursed ordinary and necessary expenses if using actual 

expenses to figure the deduction. If you are using the simplified method to figure your deduction, use the Simplified 

Method Worksheet, later.

Instructions for the Worksheet To 

Figure the Deduction for Business 

Use of Your Home

The Worksheet To Figure the Deduction for Business Use 

of Your Home is to be used by taxpayers filing Schedule F 

Publication 587 (2023) 19
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)

Direct 

Expenses

(b)

Indirect 

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)

20 Publication 587 (2023)
(Form 1040) or by partners with certain unreimbursed ordinary and necessary expenses if using actual expenses 

to figure the deduction. The following instructions explain 

how to complete each part of the worksheet.

Partners. See Partners under Where To Deduct, earlier, 

before completing the worksheet.

If you file Schedule C (Form 1040) and use actual 

expenses to figure your deduction, use Form 

8829 instead of this worksheet.

Part 1—Part of Your Home Used for 

Business

Lines 1–3. If you figure the percentage based on area, 

use lines 1 through 3 to figure the business-use percentage. Enter the percentage on line 3.

You can use any other reasonable method that accurately reflects your business-use percentage. If you operate a daycare facility and you meet the exception to the 

exclusive use test for part or all of the area you use for 

business, you must figure the business-use percentage 

for that area as explained under Daycare Facility, earlier. If 

you use another method to figure your business percentage, skip lines 1 and 2 and enter the percentage on line 3.

Part 2—Figure Your Allowable Deduction

Line 4. If you file Schedule F (Form 1040), enter your total gross income that is related to the business use of your 

home. This would generally be the amount on line 9 of 

Schedule F (Form 1040).

Lines 5–7. Use lines 5, 6, and 7 for business use of the 

home expenses that would have been deductible as a 

personal expense if you had not used your home for business. These expenses include certain casualty losses, 

mortgage interest, and real estate taxes.

Taxpayers claiming the standard deduction. If you 

claim the standard deduction, you will not include any 

mortgage interest, or real estate taxes on lines 6 and 7; instead, you will claim the entire business use of the home 

portion of those expenses using lines 14 and 15. If you are 

not increasing your standard deduction by a net qualified 

disaster loss, then you will not include any casualty losses 

on line 5; instead, you will claim the entire business use of 

the home portion of your casualty losses on line 27. If you 

are filing Schedule A to increase your standard deduction 

by a net qualified disaster loss, see Casualty losses reported on line 5, later.

You may prefer to itemize your deductions on 

Schedule A to claim amounts on lines 5, 6, and 7, 

even if your total personal deductions are less 

than the standard deduction.

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 

Form 4684 treating all your casualty losses (and gains) as 

CAUTION

!

TIP

personal expenses. If you are itemizing your deductions, 

when completing line 17 of this worksheet version of Form 

4684, enter 10% of your adjusted gross income excluding 

the gross income and deductions attributable to the business use of the home. Do not file this worksheet version of 

Form 4684; instead, keep it for your records. You will complete a separate Form 4684 to attach to your return using 

only the personal portion of your casualty losses (and 

gains) for Section A.

Step 2. Include in column (b) of line 5 the loss amounts 

from lines 15 and 18 of this worksheet version of Form 

4684 that are attributable to the home in which you conducted the business and are the result of a federally declared disaster. If you are claiming an increased standard 

deduction instead of itemizing your deductions, only use a 

net qualified disaster loss on line 15 of the worksheet version of Form 4684 for this Step 2.

See the instructions for line 33, later, for the business 

use of the home casualty losses that you must include in 

Section B of the separate Form 4684 you attach to your 

return.

Casualty losses reported on Schedule A. Use only 

the personal portion of your casualty losses (and gains) 

when completing Section A of the separate Form 4684 

you attach to your return. The separate Form 4684 you attach to your return is used to figure the casualty losses 

you can include on line 15 of Schedule A and the net 

qualified disaster losses you can include on line 16 of 

Schedule A.

Excess casualty losses. See the instructions for 

line 27, later, to deduct the part of your casualty losses for 

business use of your home not allowed because of the 

limits on deducting casualty losses as a personal expense, including any losses that are not the result of a federally declared disaster.

Mortgage interest reported on line 6. If you are claiming the standard deduction, do not report an amount on 

line 6. If you itemize your deductions, figure the amount to 

include in column (b) of line 6 as follows.

Step 1. Treat all the mortgage interest you paid as a 

personal expense and figure the amount that would be deductible as an itemized deduction on Schedule A. See 

Pub. 936 for more information about figuring the home 

mortgage interest deduction and the limits that may apply.

Step 2. Include in column (b) of line 6 the amount of 

deductible mortgage interest figured in Step 1 that is attributable to the home in which you conducted the business. Because the limits on deducting mortgage interest 

as a personal expense are figured using all loans secured 

by your home(s), do not claim mortgage interest in column 

(a) as a direct expense, even if you use a separate structure in your home in connection with your trade or business.

Mortgage interest reported on Schedule A. When 

you figure your itemized deduction for mortgage interest 

Publication 587 (2023) 21
on Schedule A, include the following amounts of deductible mortgage interest that you figured in Step 1 to the extent they are not deducted on another form, such as 

Schedule E, as a rental expense.

• The amount of deductible mortgage interest you figured in Step 1 that is not attributable to the home in 

which you conducted the business.

• The personal portion of deductible mortgage interest 

you included in column (b) of line 6. For example, if 

your business percentage on line 3 is 30%, 70% of the 

amount you included in column (b) of line 6 is deductible as an itemized deduction on Schedule A.

Excess mortgage interest. See the instructions for 

line 14, later, to deduct the part of your mortgage interest 

from loans used to buy, build, or substantially improve the 

home in which you conducted business that is not allowed 

on line 6 because of the limits on deducting home mortgage interest as a personal expense.

Real estate taxes reported on line 7. If you are claiming the standard deduction, do not report an amount on 

line 7. If you are itemizing deductions, figure the amount to 

include on line 7 as follows.

Step 1. If the total of your state and local income (or, if 

elected on your Schedule A, general sales) taxes, real estate taxes, and personal property taxes is not more than 

$10,000 ($5,000 if married filing separately), enter all the 

real estate taxes attributable to the home in which you 

conducted business in column (b) of line 7.

Step 2. If you do not meet the condition of Step 1, use 

the following worksheet to figure the amount to include in 

column (a) of line 7.

Line 7 Worksheet

1. Enter your state and local income taxes (or, if you 

elect on Schedule A, your state and local general 

sales taxes) that are personal expenses ...... 1.

2. Enter all the state and local real estate taxes you 

paid on the home in which you conducted 

business ......................... 2.

3. Enter any other state and local real estate taxes 

you paid that are a personal expense and not 

included on line 2 .................... 3.

4. Enter your state and local personal property 

taxes that are a personal expense .......... 4.

5. Add lines 1 through 4 ................. 5.

6. Multiply line 2 by the percentage on line 3 of the 

Worksheet To Figure the Deduction for Business 

Use of Your Home ................... 6.

7. Subtract line 6 from line 5 ............... 7.

8. Subtract line 7 from $10,000 ($5,000 if married 

filing separately). If zero or less, enter -0- ..... 8.

9. Real estate taxes reported on line 7. Enter the 

smaller of line 6 or line 8 here and in column (a) 

of line 7 of the Worksheet To Figure the 

Deduction for Business Use of Your Home .... 9.

10. Excess real estate taxes reported on line 15.

Subtract line 9 from line 6 ............... 10.

Real estate taxes reported on Schedule A. When 

you figure your itemized deduction for state and local 

taxes on Schedule A, only include the personal portion of 

your real estate taxes on line 5b of Schedule A.

Excess real estate taxes. See the instructions for 

line 15, later, to deduct the part of your real estate taxes 

for the home in which you conducted business that is not 

allowed on line 7 because of the limitation on deducting 

state and local taxes as a personal expense.

Lines 9 and 10. Multiply your total indirect expenses 

(line 8, column (b)) by the business percentage from 

line 3. Enter the result on line 9. Add this amount to the total direct expenses (line 8, column (a)) and enter the total 

on line 10.

Lines 11–13. Enter any other business expenses that are 

not attributable to business use of the home on line 11. 

Farmers should generally enter their total farm expenses 

before deducting office-in-the-home expenses. Do not enter the deductible part of your self-employment tax. Add 

the amounts on lines 10 and 11, and enter the total on 

line 12. Subtract line 12 from line 4, and enter the result on 

line 13. This is your deduction limit. You use it to determine whether you can deduct any of your other expenses 

for business use of the home this year. If you cannot, you 

will carry them over to the next year in which you use actual expenses to figure the deduction.

If line 13 is zero or less, enter -0-. Deduct your expenses for deductible home mortgage interest, real estate 

taxes, casualty losses, and any business expenses not attributable to use of your home on the appropriate lines of 

the schedule(s) for Form 1040 or Form 1040-SR, as explained earlier under Where To Deduct.

Lines 14–23. On lines 14 through 20, enter your otherwise nondeductible expenses for the business use of your 

home. These include utilities, insurance, repairs, and 

maintenance. If you rent, report the amount paid on 

line 17. In column (a), enter the expenses that benefit only 

the business part of your home (direct expenses). In column (b), enter the expenses that benefit the entire home 

(indirect expenses). Multiply line 21, column (b), by the 

business-use percentage (line 3) and enter this amount on 

line 22.

If you deducted actual expenses for the business use of 

your home on your 2022 tax return, enter on line 23 the 

amount from line 41 of your 2022 worksheet. If you used 

the simplified method in 2022, enter on line 23 the amount 

from line 6a of your 2022 Simplified Method Worksheet.

Line 14—Excess home mortgage interest. If you 

are claiming the standard deduction, enter all the home 

mortgage interest paid for loans used to buy, build, or substantially improve the home in which you conducted business in column (b) of line 14. Do not include mortgage interest on a loan that did not benefit your home (for 

example, a home equity loan used to pay off credit card 

bills, to buy a car, or to pay tuition costs).

If you are itemizing deductions on Schedule A and the 

amount you figured in Step 1 under Mortgage interest reported on line 6, earlier, was less than the full amount of 

interest you paid because of the limits on deducting home 

mortgage interest as a personal expense, include the 

22 Publication 587 (2023)
excess attributable to the loans used to buy, build, or substantially improve the home in which you conducted business in column (b) of line 14.

Example. If you paid $15,000 of home mortgage interest on loans used to buy, build, or substantially improve 

the home in which you conducted business but would only 

be able to deduct $12,000 on Schedule A because of the 

limits that apply to deducting home mortgage interest as a 

personal expense, include $3,000 ($15,000 - $12,000 = 

$3,000) in column (b) of line 14.

Line 15—Excess real estate taxes. If you are claiming the standard deduction, enter all the real estate taxes 

paid on the home in which you conducted business in column (b) of line 15.

If you are itemizing deductions on Schedule A and you 

used the Line 7 Worksheet to figure the amount to include 

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 

line 15.

Lines 26–31. On lines 26 through 31, figure your limit on 

deductions for excess casualty losses and depreciation.

If you deducted actual expenses for business use of 

your home on your 2022 tax return, enter on line 29 the 

amount from line 42 of your 2022 worksheet. If you used 

the simplified method in 2022, enter on line 29 the amount 

from line 6b of your 2022 Simplified Method Worksheet.

Line 27—Excess casualty loss. Multiply the casualty losses attributable to the home in which you conducted business that are in excess of the amount reported on 

line 5 (if any) by the business percentage of those losses 

and enter the result.

Lines 32–34. On line 32, total all allowable business-use-of-the-home deductions.

On line 33, enter the total of the casualty losses shown 

on lines 10 and 31. Enter the amount from line 33 on 

line 27 of Form 4684, Section B. Attach a statement to 

your tax return showing how you calculated the deductible 

loss (you can use the worksheet as your attachment) and 

enter "See attached statement" above line 27 of Form 

4684. See the Instructions for Form 4684 for more information on completing that form.

Line 34 is the total (other than casualty losses) allowable as a deduction for business use of your home. If you 

file Schedule F (Form 1040), enter this amount on line 32, 

Other expenses, of Schedule F (Form 1040) and enter 

“Business Use of Home” on the line beside the entry. Do 

not add the specific expenses into other line totals of Part 

II of Schedule F (Form 1040).

If you are a partner, see Where To Deduct, earlier, for 

information on how to claim the deduction.

Part 3—Depreciation of Your Home

Figure your depreciation deduction on lines 35 through 40. 

On line 35, enter the smaller of the adjusted basis or the 

fair market value of the property at the time you first used it 

for business. Do not adjust this amount for changes in basis or value after that date. Allocate the basis between the 

land and the building on lines 36 and 37. You cannot depreciate any part of the land. On line 39, enter the correct 

percentage for the current year from the tables in Pub. 

946. Multiply this percentage by the business basis to get 

the depreciation deduction. Enter this figure on lines 40 

and 28. Complete and attach Form 4562 to your return if 

this is the first year you used your home, or an improvement or addition to your home, in business.

Part 4—Carryover of Unallowed Expenses to 

Next Year

Complete these lines to figure the expenses that must be 

carried forward to the next year in which you use actual 

expenses.

Worksheets To Figure the 

Deduction for Business Use of 

Your Home (Simplified Method)

The Simplified Method Worksheet and the Daycare Facility Worksheet in this section are to be used by taxpayers 

filing Schedule F (Form 1040) or by partners with certain 

unreimbursed ordinary and necessary expenses if using 

the simplified method to figure the deduction. If you are filing Schedule C (Form 1040) to report a business use of 

your home in your trade or business and you are using the 

simplified method to figure the deduction, use the Simplified Method Worksheet and the Daycare Facility Worksheet in your Instructions for Schedule C for that business 

use.

The Area Adjustment Worksheet in this section may be 

used by any taxpayer using the simplified method to figure 

the deduction.

Publication 587 (2023) 23
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 2023.

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.

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.

24 Publication 587 (2023)
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, 

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. 

(ii) Area

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.

Publication 587 (2023) 25
Instructions for the Simplified Method 

Worksheet

If you are a partner or you file Schedule F (Form 1040), 

and you elected to use the simplified method, use the 

Simplified Method Worksheet. The following instructions 

explain how to complete this worksheet.

Partners. See Partners under Where To Deduct, earlier, 

before completing the Simplified Method Worksheet.

Use the Simplified Method Worksheet to figure the 

amount of expenses you may deduct for a qualified business use of a home if you are electing to use the simplified 

method for that home. If you are not electing to use the 

simplified method, use Form 8829 or the Worksheet To 

Figure the Deduction for Business Use of Your Home, earlier, as appropriate.

Line 1. If all gross income from your trade or business is 

from this qualified business use of your home, figure your 

gross income limitation as follows.

A. Enter the amount of gross income. If you file Schedule F 

(Form 1040), this amount would generally be the amount 

on line 9 of Schedule F ......................

B. Enter any gain derived from the business use of your 

home and shown on Form 8949 (and included on 

Schedule D) or Form 4797 ....................

C. Add lines A and B .........................

D. Business expenses not from business use of the home . .

E. Enter the total amount of any losses (as a positive 

number) shown on Form 8949 (and included on 

Schedule D) or Form 4797 that are allocable to the 

business, but not allocable to the business use of the 

home .................................

F. Add lines D and E .........................

G. Gross income limitation. Subtract line F from line C. Enter 

the result here and on line 1 ...................

If some of the income is from a place of business other 

than your home, you must first determine the part of your 

gross income from the business use of your home. In 

making this determination, consider the amount of time 

you spent at each location as well as other facts. After determining the part of your gross income from the business 

use of your home, subtract from that amount the total expenses and any losses that are allocable to the business 

in which you use your home but that are not allocable to 

the business use of the home.

Only include on line A the gross income from the business that is related to the business use of your home. 

Only include on line D and line E the deductible business 

expenses and losses that are related to the business activity in the home, but not related to the business use of 

the home itself.

Note. If you had more than one home in which you 

conducted this business during the year, include only the 

income earned and the deductions attributable to that income during the period you owned the home for which 

you elected to use the simplified method.

Line 2. If you used the same area for the entire year, enter the smaller of the square feet you actually used or 300. 

If you and your spouse conducted the business as a qualified joint venture, split the square feet between you and 

your spouse in the same manner you split your other tax 

attributes. If you shared space with someone else, used 

the home for business for only part of the year, or the area 

you used changed during the year, see Allowable area under Using the Simplified Method, earlier, before entering 

an amount on this line. Do not enter more than 300 square 

feet or, if applicable, the average monthly allowable 

square footage on this line. See Part-year use or area 

changes (for simplified method only) under Using the Simplified Method, earlier, for more information on how to figure your average monthly allowable square footage.

Line 3b. If your qualified business use is providing daycare, you may need to account for the time that you used 

the same part of your home for other purposes. If you 

used the part of your home exclusively and regularly for 

providing daycare, enter 1.0 on line 3b. If you did not use 

the part of your home exclusively for providing daycare, 

complete the Daycare Facility Worksheet to figure what 

number to enter on line 3b.

Line 6. Since you are using the simplified method this 

year, you cannot deduct the amounts you entered on lines 

6a and 6b this year. If you figure your deduction for business use of the home using actual expenses next year, 

you will be able to include these expenses when you figure your deduction.

Line 6a. If you did not complete a 2022 Worksheet To 

Figure the Deduction for Business Use of Your Home, 

then your carryover of prior-year operating expenses is the 

amount of operating expenses shown in Part 4 of the last 

Worksheet To Figure the Deduction for Business Use of 

Your Home, if any, that you completed using actual expenses in order to claim a deduction for business use of the 

home as a partner or Schedule F filer.

Line 6b. If you did not complete a 2022 Worksheet To 

Figure the Deduction for Business Use of Your Home, 

then your carryover of prior-year excess casualty losses 

and depreciation is the amount of excess casualty losses 

and depreciation shown in Part 4 of the last Worksheet To 

Figure the Deduction for Business Use of Your Home, if 

any, that you completed using actual expenses to claim a 

deduction for business use of the home as a partner or 

Schedule F filer.

Instructions for the Daycare Facility 

Worksheet

Use the Daycare Facility Worksheet to figure the percentage to use on line 3b of the Simplified Method Worksheet. 

If you do not use the area of your home exclusively for 

daycare, you must reduce the amount on line 3a before 

figuring your deduction using the simplified method.

26 Publication 587 (2023)
If you used at least 300 square feet for daycare 

regularly and exclusively during the year, then you 

do not need to complete this worksheet. This 

worksheet is only needed if you did not use the allowable 

area exclusively for daycare.

Line 1. Enter the total number of hours the facility was 

used for daycare during the year.

Example. Your home is used Monday through Friday 

for 12 hours per day for 250 days during the year. It is also 

used on 50 Saturdays for 8 hours a day. Enter 3,400 hours 

on line 4 (3,000 hours for weekdays plus 400 hours for 

Saturdays).

Line 2. If you used your home for daycare during the entire year, multiply 365 days (366 for a leap year) by 24 

hours, and enter the result.

If you started or stopped using your home for daycare 

during the year, you must prorate the number of hours 

based on the number of days the home was available for 

daycare. Multiply 24 hours by the number of days available and enter that result.

Instructions for the Area Adjustment 

Worksheet

Use the Area Adjustment Worksheet to figure the area that 

you may use to figure your deduction.

Line 2. If you and another person both used the home to 

conduct business that qualifies for the deduction, the 

same area cannot be used by both persons to figure the 

deduction.

Line 2c. With the other people using the home for qualified business use, determine a reasonable allocation of 

shared space to your qualified business use. Do not include area that is claimed by another person.

Line 3. If you used your home for more than one qualified 

business use, the total area that you can use to figure the 

deduction is still only 300 square feet, not 300 square feet 

per business use. You may allocate the square footage 

among your qualified business uses in any reasonable 

manner, but you may not allocate more square feet to a 

qualified business use than was actually used.

Line 3d. Allocate part of line 3c to this qualified business 

use. Do not allocate more square feet to this qualified 

business use than was actually used during the year. Do 

not allocate any amount on line 3c to this qualified business use that you allocated to another qualified business 

use.

Line 6. If you only 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, then you 

need to figure the average monthly allowable square footage. To do this, use lines 1 through 5 of this worksheet for 

each month. For example, for January, complete lines 1 

through 5 using the area and allocation information for 

TIP

January only; then, enter the result in line 6a, column (ii). 

If, in any month, you did not have 15 or more days of this 

qualified business use, enter -0- for that month. For example, if you did not begin using your home for this qualified 

business use until January 20, enter -0- in line 6a, column 

(ii).

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax 

preparation may not be available through Free File. Go 

to IRS.gov/FreeFile to see if you qualify for free online 

federal tax preparation, e-filing, and direct deposit or 

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE or download the free IRS2Go app 

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Publication 587 (2023) 27
Also, the IRS offers Free Fillable Forms, which can 

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN) at no 

cost.

• The Tax Withholding Estimator (IRS.gov/W4App) 

makes it easier for you to estimate the federal income 

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax information in your 

e-filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the 

information required for the preparer to accurately 

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns 

for others should have a thorough understanding of tax 

CAUTION

!

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

W-2 filing options to CPAs, accountants, enrolled agents, 

and individuals who process Form W-2, Wage and Tax 

Statement, and Form W-2c, Corrected Wage and Tax 

Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our 

highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving taxpayers with limited-English 

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and 

every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or 

account-related issues, go to IRS.gov/LetUsHelp.

28 Publication 587 (2023)
Note. Form 9000, Alternative Media Preference, or 

Form 9000(SP) allows you to elect to receive certain types 

of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the 

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to 

IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on 

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for 

iPad. Our eBooks haven’t been tested on other dedicated 

eBook readers, and eBook functionality may not operate 

as intended.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax 

year.

• See payment plan details or apply for a new payment 

plan.

• Make a payment or view 5 years of payment history 

and any pending or scheduled payments.

• Access your tax records, including key data from your 

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account, 

you can access a variety of information to help you during 

the filing season. You can get a transcript, review your 

most recently filed tax return, and get your adjusted gross 

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional 

submit an authorization request to access your individual 

taxpayer IRS online account. For more information, go to 

IRS.gov/TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. Eight in 

10 taxpayers use direct deposit to receive their refunds. If 

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank 

or credit union that can open an account online.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your 

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February 

for returns that claimed the EIC or the additional 

child tax credit (ACTC). This applies to the entire 

refund, not just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax must be 

remitted to the IRS in U.S. dollars. Digital assets are not 

accepted. Go to IRS.gov/Payments for information on how 

to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated 

tax payment directly from your checking or savings account at no cost to you.

• Debit Card, Credit Card, or Digital Wallet: Choose an 

approved payment processor to pay online or by 

phone.

CAUTION

!

Publication 587 (2023) 29
• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/Form1040X 

for information and updates.

Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed 

your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter. You can now 

upload responses to all notices and letters using the 

Document Upload Tool. For notices that require additional 

action, taxpayers will be redirected appropriately on 

IRS.gov to take further action. To learn more about the 

tool, go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may 

not immediately receive written communications in the requested language. The IRS’s commitment to LEP 

CAUTION

!

taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive 

communications, including notices and letters, in English 

until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. 

Go to IRS.gov/LetUsHelp for the topics people ask about 

most. If you still need help, TACs provide tax help when a 

tax issue can’t be handled online or by phone. All TACs 

now provide service by appointment, so you’ll know in advance that you can get the service you need without long 

wait times. Before you visit, go to IRS.gov/TACLocator to 

find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, 

under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. TAS strives 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. To find your advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

30 Publication 587 (2023)
• Download Pub. 1546, The Taxpayer Advocate Service 

Is Your Voice at the IRS, available at IRS.gov/pub/irspdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to TAS at IRS.gov/SAMS. Be sure to not include 

any personal taxpayer information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level 

and who need to resolve tax problems with the IRS. LITCs 

can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, 

LITCs can provide information about taxpayer rights and 

responsibilities in different languages for individuals who 

speak English as a second language. Services are offered 

for free or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, 

Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/

4134.pdf.

Publication 587 (2023) 31
Exhibit A. Family Daycare Provider Meal and Snack Log Name of Provider _______________________________ Week of _____________________________ Year______________ Keep For Your Records Child's Name Monday Tuesday Wednesday Thursday Friday Saturday Sunday Totals Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Number served: _____ Breakfasts: _____ Lunches: _____ Dinners: ______ Snacks: ______ Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Number served: _____ Breakfasts: _____ Lunches: _____ Dinners: _____ Snacks: _____ Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Hours of attendance: _____ Bkfst Snack Lunch Snack Dinner Snack Number served: _____ Breakfasts: _____ Lunches: _____ Dinners: _____ Snacks: _____ Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

Hours of attendance: _____ Bkfst

SnackLunchSnackDinnerSnack

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

32 Publication 587 (2023)
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.

A

Adjusted basis defined 8

Administrative or management 

activities 4

Assistance (See Tax help)

Attorneys 5

B

Business expenses not for use of 

home 19

Business furniture and 

equipment 16

Business percentage 9

Business use of the home 

requirements (See Qualifying for a 

deduction)

C

Carryover of unallowed expenses 9

Child and Adult Care Food Program 

reimbursements 13

D

Daycare facilities 12

Eligible children for standard meal 

and snack rates 14

Exceptions for regular use 

requirement 12

Family daycare 14

Meals 13, 14

Regular basis 12

Standard meal and snack rates 13, 

14

Deduction limit 9

Deduction requirements:

Exceptions to exclusive use 3

Exclusive use 3

More than one trade or business 5

Place to meet patients, clients, or 

customers 5

Principal place of business 3

Regular use 3

Separate structure 6

Storage of inventory or product 

samples 3

Trade or business use 3

Deductions

Figuring 6, 21

Limit 9

Part-year use 6

Qualifying for 2

Unreimbursed partnership 

expenses 19

Using Actual Expenses 6

Dentists 5

Depreciation 16

5-year property 17

7-year property 17

Adjusted basis 8

Business furniture and 

equipment 16, 17

Fair market value 8

Figuring depreciation for the current 

year 8

Home 7

Nonresidential real property 8

Percentage table for 39-year 

nonresidential real property 8

Percentage table for 5- and 7-year 

property 17

Permanent improvements 8, 9

Depreciation of home 7

Basis adjustment 15

MACRS (Table 2) 8

Property bought for business 

use 15

Sale or exchange of your home 15

Doctors 5

E

Exclusive use 3

Expenses:

Direct 6

Indirect 6

Insurance 7

Related to tax-exempt income 6

Rent 7

Repairs 7

Security system 7

Telephone 7

Unrelated 6

Utilities and services 7

Where to deduct 18

F

Fair market value 8

Family daycare providers 14

Meal and snack log (Exhibit A) 32

Standard meal and snack rates 14

Figuring the deduction:

Business percentage 9

Deduction limit 9

Form 2, 18

1040, Schedule F:

Worksheet 20

4562 16

8829 6, 9, 13

H

Home:

Business percentage 9

Depreciation 7

Sale of 14

Home expenses, Can you deduct 

business use of, Figure A 4

I

Improvements (See Permanent 

improvements)

Insurance 7

Inventory, storage of 3

L

Listed property:

Defined 16

Reporting and recordkeeping 

requirements 16

Years following the year placed in 

service 16

M

MACRS percentage table:

39-year nonresidential real 

property 8

5- and 7-year property 17

Meals 13

Meeting with patients, clients, or 

customers on premises 5

More than one place of 

business 10

More than one trade or business 5

More-than-50%-use test 16

P

Partners 19

Partnership expenses, 

unreimbursed 19

Permanent improvements 8, 9

Personal property converted to 

business use 17

Place of business, more than 

one 10

Principal place of business 3

Product samples 3

Property bought for business use:

Depreciation 17

Section 179 deduction 16

Property converted to business 

use, Personal 17

Publications 2

Q

Qualifying for a deduction 2

R

Recordkeeping 17

Regular use 3

Reminders 1

Rent 7

Repairs 7

Reporting and recordkeeping 

requirements 16

Meal and snack log (Exhibit A) 32

Publication 587 (2023) 33
Reporting requirements:

Business furniture and 

equipment 16

S

Sale or exchange of your home 14

Basis adjustment 15

Depreciation 15

Ownership and use tests 14

Schedule F (See Worksheet to figure 

the deduction)

Section 179 16

Business furniture and 

equipment 16

Listed property 16

Personal property converted to 

business use 17

Property bought for business 

use 16

Security system 7

Self-employed persons:

Deduction of expenses 18

Separate structure 6

Simplified Method:

Actual expenses and depreciation 

of your home 10

Allowable area 11

Business expenses not related to 

use of the home 12

Electing the simplified method 10

More than one home 11

More than one qualified business 

use 10

Shared use 10

Expenses deductible without regard 

to business use 10

No deduction of carryover of 

unallowed expenses 10

Part-year use or area changes 11

Simplified amount 11

Space used regularly for 

daycare 12

Using the simplified method 10

Standard meal and snack rates 14

Storage of inventory or product 

samples 3

T

Tables and figures:

MACRS:

Percentage table for 39-year 

nonresidential real property 

(Table 2) 8

Percentage table for 5- and 

7-year property (Table 4) 17

Qualifying for deduction (Figure 

A) 4

Standard meal and snack rates 

(Table 3) 14

Types of expenses (Table 1) 6

Tax help 27

Telephone 7

Trade or business use 3

Types of expenses 6

U

Utilities 7

W

Where to deduct expenses 18

Self-employed 18

Worksheets:

Area Adjustment Worksheet (for 

simplified method) 25

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

Daycare facility worksheet (for 

simplified method) 24

Simplified method worksheet 24

34 Publication 587 (2023)