Expenses for Business Use of Your Home

Part of Your Home Used for Business

1 Area used regularly and exclusively for business, regularly for day care, or for storage of inventory

or product samples (see instructions)

2 Total area of home

3 Divide line 1 by line 2. Enter the result as a percentage

● For day-care facilities not used exclusively for business, also complete lines 4–6.

● All others, skip lines 4–6 and enter the amount from line 3 on line 7.

4 Multiply days used for day care during year by hours used per day

5 Total hours available for use during the year (365 days  24 hours) (see instructions)

6 Divide line 4 by line 5. Enter the result as a decimal amount

7 Business percentage. For day-care facilities not used exclusively for business, multiply line 6 by

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

Figure Your Allowable Deduction

8 Enter the amount from Schedule C, line 29, plus any net gain or (loss) derived from the business use of

your home and shown on Schedule D or Form 4797. If more than one place of business, see instructions

9 Casualty losses (see instructions)

10 Deductible mortgage interest (see instructions)

11 Real estate taxes (see instructions)

12 Add lines 9, 10, and 11

13 Multiply line 12, column (b) by line 7

14 Add line 12, column (a) and line 13

15 Subtract line 14 from line 8. If zero or less, enter -0-

16 Excess mortgage interest (see instructions)

17 Insurance

18 Repairs and maintenance

File only with Schedule C (Form 1040). Use a separate Form 8829 for each

home you used for business during the year.

See separate instructions.

OMB No. 1545-1266

Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 66

Form 8829

Name(s) of proprietor(s)

(a) Direct expenses (b) Indirect expenses

19 Utilities

20 Other expenses (see instructions)

21 Add lines 16 through 20

22 Multiply line 21, column (b) by line 7

23 Carryover of operating expenses from 2002 Form 8829, line 41

24 Add line 21 in column (a), line 22, and line 23

25 Allowable operating expenses. Enter the smaller of line 15 or line 24

26 Limit on excess casualty losses and depreciation. Subtract line 25 from line 15

27 Excess casualty losses (see instructions)

28 Depreciation of your home from Part III below

29 Carryover of excess casualty losses and depreciation from 2002 Form 8829, line 42

30 Add lines 27 through 29

31 Allowable excess casualty losses and depreciation. Enter the smaller of line 26 or line 30

32 Add lines 14, 25, and 31

33 Casualty loss portion, if any, from lines 14 and 31. Carry amount to Form 4684, Section B

34 Allowable expenses for business use of your home. Subtract line 33 from line 32. Enter here

and on Schedule C, line 30. If your home was used for more than one business, see instructions 

35 Enter the smaller of your home’s adjusted basis or its fair market value (see instructions)

36 Value of land included on line 35

37 Basis of building. Subtract line 36 from line 35

38 Business basis of building. Multiply line 37 by line 7

Depreciation of Your Home

39 Depreciation percentage (see instructions)

40 Depreciation allowable (see instructions). Multiply line 38 by line 39. Enter here and on line 28 above

41 Operating expenses. Subtract line 25 from line 24. If less than zero, enter -0-

42 Excess casualty losses and depreciation. Subtract line 31 from line 30. If less than zero, enter -0-

Carryover of Unallowed Expenses to 2004

For Paperwork Reduction Act Notice, see page 4 of separate instructions. Cat. No. 13232M Form 8829 (2003)

1

2

3

4

5

6

7

24

25

26

30

31

32

33

34

35

36

37

38

39

40

41

42

27

28

29

22

23

8

9

10

11

12

13

14

15

16

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18

19

20

21

hr.

8,760 hr.

.

%

Part IV

Part I

Part II

Your social security number

%

%

Part III

See instructions for columns (a) and (b) before

completing lines 9–20.

(99)

2003