Instructions For Form 8829 - Expenses For Business Use Of Your Home

line 17. Include on Form 8829, line 9, the amount from Form

If you used the simplified method for 2013 but are not using it

4684, line 18. See the instructions for line 28, later, to deduct

for 2014, enter the amount from line 6b of your 2013 Simplified

part of the casualty losses not allowed because of the limits on

Method Worksheet (or line 43 of your 2012 Form 8829).

Form 4684. Do not file or use this Form 4684 to figure the

Line 34

amount of casualty losses to deduct on Schedule A. Instead,

complete a separate Form 4684 to deduct the personal portion

Enter this amount on Form 4684, line 27, and enter "See Form

of your casualty losses.

8829" above line 27.

On line 10, include only the total of your mortgage interest

Line 35

and qualified mortgage insurance premiums that would be

deductible on Schedule A and that qualifies as a direct or

If your home was used in more than one business, allocate the

indirect expense. Mortgage interest on a separate structure you

amount shown on line 35 to each business using any method

used in connection with your trade or business is a direct

that is reasonable under the circumstances. For each business,

expense. Do not include mortgage interest on a loan that did not

enter on Schedule C, line 30, only the amount allocated to that

benefit your home (for example, a home equity loan used to pay

business.

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

Part III

Treat qualified mortgage insurance premiums as personal

expenses for this step. Figure the amount to enter on line 10 by

Lines 36 Through 38

completing Schedule A, line 13, in accordance with the

Instructions for Schedule A (Form 1040). However, when

Enter on line 36 the cost or other basis of your home (including

figuring your adjusted gross income (Form 1040, line 38) for this

land), or, if less, the fair market value of your home on the date

purpose, exclude the gross income from business use of your

you first used the home for business. Do not adjust this amount

home and the deductions attributable to that income. Include on

for depreciation claimed or changes in fair market value after the

Form 8829, line 10, the amount from Schedule A, line 13. See

year you first used your home for business.

the instructions for line 16, later, to deduct part of the qualified

Enter on line 37 the cost or other basis of the land on which

mortgage insurance premiums not allowed because of the

your home sits, or, if less, the fair market value of the land on the

adjusted gross income limit. Do not file or use that Schedule A to

date you first used the home for business. Do not adjust this

figure the amount to deduct on line 13 of that schedule. Instead,

amount for changes in fair market value after the year you first

complete a separate Schedule A to deduct the personal portion

used your home for business.

of your qualified mortgage insurance premiums.

If you itemize your deductions, be sure to claim only the

Attach your own statement showing the cost or other basis of

personal portion of your deductible mortgage interest, qualified

additions and improvements, used at least partially for business,

mortgage insurance premiums, and real estate taxes on

that were placed in service after you began to use your home for

Schedule A. For example, if your business percentage on line 7

business. Do not include any amounts on lines 36 through 39 for

is 30%, you can claim 70% of your deductible mortgage interest,

these expenditures. Instead, see the instructions for line 41.

qualified mortgage insurance premiums, and real estate taxes

Line 40

on Schedule A.

Line 16

IF you first used your home for

THEN enter the following

If the amount of home mortgage interest or qualified mortgage

business in the following month in

percentage on line 40*...

insurance premiums you deduct on Schedule A is limited, enter

2014...

the part of the excess that qualifies as a direct or indirect

January

2.461%

expense. Do not include mortgage interest on a loan that did not

benefit your home (explained earlier).

February

2.247%

March

2.033%

Line 18

April

1.819%

If you rent rather than own your home, include the rent you paid

on line 18, column (b).

May

1.605%

If your housing is provided free of charge and the value of the

June

1.391%

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

July

1.177%

portion of the housing.

August

0.963%

Line 21

September

0.749%

Include on this line any 2014 operating expenses not included

October

0.535%

on lines 9 through 20.

November

0.321%

Line 24

December

0.107%

Enter any amount from your 2013 Form 8829, line 42.

*Exception. If the business part of your home is Indian reservation property

that meets the requirements of section 168(j), see Pub. 946 to figure the

If you used the simplified method for 2013 but are not using it

depreciation.

for 2014, enter the amount from line 6a of your 2013 Simplified

Method Worksheet (or line 42 of your 2012 Form 8829).

Line 28

Multiply your casualty losses in excess of the amount on line 9

by the business percentage of those losses and enter the result.

Line 30

Enter any amount from your 2013 Form 8829, line 43.

Instructions For Form 8829 - Expenses For Business Use Of Your Home - 2014 Page 3

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