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

Part III

home and the deductions attributable to that income when

figuring the amount to enter on Form 4684, line 17. Include on

Form 8829, line 9, the amount from Form 4684, line 18. See the

Lines 36 Through 38

instructions for line 28, later, to deduct part of the casualty losses

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

not allowed because of the limits on Form 4684. Do not file or

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

use that Form 4684 to figure the amount of casualty losses to

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

deduct on Schedule A. Instead, complete a separate Form 4684

for depreciation claimed or changes in fair market value after the

to deduct the personal portion of your casualty losses.

year you first used your home for business.

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

and qualified mortgage insurance premiums that would be

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

deductible on Schedule A and that qualifies as a direct or

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

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

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

did not benefit your home (for example, a home equity loan used

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

used your home for business.

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

Treat qualified mortgage insurance premiums as personal

Attach your own statement showing the cost or other basis of

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

additions and improvements, used at least partially for business,

completing Schedule A, line 13, in accordance with the

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

Schedule A (Form 1040) instructions. However, when figuring

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

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

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

purpose, exclude the gross income from business use of your

Line 40

home and the deductions attributable to that income. Include on

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

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

IF you first used your home for

THEN enter the following

mortgage insurance premiums not allowed because of the

business in the following month in

percentage on line 40*...

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

2013...

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

complete a separate Schedule A to deduct the personal portion

January

2.461%

of your qualified mortgage insurance premiums.

February

2.247%

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

March

2.033%

personal portion of your deductible mortgage interest, qualified

April

1.819%

mortgage insurance premiums, and real estate taxes on

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

May

1.605%

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

June

1.391%

qualified mortgage insurance premiums, and real estate taxes

July

1.177%

on Schedule A.

August

0.963%

Line 16

September

0.749%

If the amount of home mortgage interest or qualified mortgage

October

0.535%

insurance premiums you deduct on Schedule A is limited, enter

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

November

0.321%

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

December

0.107%

benefit your home (explained earlier).

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

(as defined in section 168(j)(4)), see Pub. 946, How To Depreciate Property, to figure

Line 18

the depreciation.

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

on line 18, column (b). 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.

Line 21

Include on this line any 2013 operating expenses not included

on lines 9 through 20.

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 34

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

Form 8829" above line 27.

Line 35

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

amount shown on line 35 to each business using any method

that is reasonable under the circumstances. For each business,

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

business.

Instructions For Form 8829 - Expenses For Business Use Of Your Home - 2013 Page 3

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