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

Line 34

used in connection with your trade or business is a direct

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

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

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

8829" above line 27.

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

Line 35

Treat qualified mortgage insurance premiums as personal

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

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

amount shown on line 35 to each business using any method

completing Schedule A, line 13, in accordance with the

that is reasonable under the circumstances. For each business,

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

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

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

business.

purpose, exclude the gross income from business use of your

home and the deductions attributable to that income. Include on

Part III

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

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

Lines 36 Through 38

mortgage insurance premiums not allowed because of the

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

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

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

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

complete a separate Schedule A to deduct the personal portion

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

of your qualified mortgage insurance premiums.

for depreciation claimed or changes in fair market value after the

year you first used your home for business.

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

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

personal portion of your deductible mortgage interest, qualified

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

mortgage insurance premiums, and real estate taxes on

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

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

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

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

used your home for business.

qualified mortgage insurance premiums, and real estate taxes

on Schedule A.

Attach your own statement showing the cost or other basis of

additions and improvements, used at least partially for business,

Line 16

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

If the amount of home mortgage interest or qualified mortgage

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

insurance premiums you deduct on Schedule A is limited, enter

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

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

Line 40

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

benefit your home (explained earlier).

Example. If your business percentage on line 7 is 10%

IF you first used your home for

THEN enter the following

(0.10) and you paid $15,000 of home mortgage interest but can

business in the following month in

percentage on line 40*...

only deduct $12,000 on Schedule A because of a limitation,

2015...

enter $300 ($15,000 - $12,000 = $3,000 x 0.10 = $300). For

January

2.461%

more information about home mortgage interest deduction

limitations, see Pub. 936.

February

2.247%

Line 18

March

2.033%

April

1.819%

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

on line 18, column (b).

May

1.605%

June

1.391%

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

July

1.177%

portion of the housing.

August

0.963%

Line 21

September

0.749%

Include on this line any 2015 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 2014 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 2014 but are not using it

depreciation.

for 2015, enter the amount from line 6a of your 2014 Simplified

Method Worksheet (or line 42 of your 2013 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 2014 Form 8829, line 43.

If you used the simplified method for 2014 but are not using it

for 2015, enter the amount from line 6b of your 2014 Simplified

Method Worksheet (or line 43 of your 2013 Form 8829).

Instructions For Form 8829 - Expenses For Business Use Of Your Home - 2015 Page 3

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