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

Line 28

Treat casualty losses as personal expenses for this step. You

figure the amount to enter on line 9 by completing Section A of a

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

2017 Form 4684 as a worksheet. When completing line 17 of

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

this worksheet version of Form 4684, enter 10% of your adjusted

gross income excluding the gross income from business use of

Line 30

your home and the deductions attributable to that income.

Enter any amount from your 2016 Form 8829, line 43.

Include on Form 8829, line 9, the amounts from lines 15 and 18

of your worksheet version of Form 4684. Do not file this

If you did not file a 2016 Form 8829, then your carryover of

worksheet version of Form 4684; instead, keep it for your

prior year excess casualty losses and depreciation is the amount

records. You will complete a separate Form 4684 to attach to

of excess casualty losses and depreciation shown in Part IV of

your return.

the last Form 8829, if any, that you filed to claim a deduction for

business use of the home.

To figure the casualty losses that you can include in your

itemized deductions on Schedule A or the qualified disaster

For example, if you filed a 2015 Form 8829 and you used the

losses by which you may be able to increase your standard

simplified method for 2016 but are not using it for 2017, enter the

deduction, complete Section A on the separate Form 4684 using

amount from line 6b of your 2016 Simplified Method Worksheet

the personal portion of your casualty losses. See the instructions

(or line 43 of your 2015 Form 8829).

for line 34, later, for the business use of the home portion of your

casualty losses that you must include in Section B of the

Line 34

separate Form 4684.

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

See the instructions for line 28, later, to deduct part of the

8829" above line 27.

casualty losses not allowed because of the limits on Form 4684.

Line 35

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

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

that would be deductible on Schedule A and that qualifies as a

amount shown on line 35 to each business using any method

direct or indirect expense. Mortgage interest on a separate

that is reasonable under the circumstances. For each business,

structure you used in connection with your trade or business is a

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

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

business.

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

Part III

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

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

Lines 36 Through 38

personal portion of your deductible mortgage interest and real

estate taxes on Schedule A. For example, if your business

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

percentage on line 7 is 30%, you can claim 70% of your

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

deductible mortgage interest and real estate taxes on

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

Schedule A.

for depreciation claimed or changes in fair market value after the

year you first used your home for business.

Line 16

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

If the amount of home mortgage interest you deduct on

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

Schedule A is limited, enter the part of the excess that qualifies

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

as a direct or indirect expense. Do not include mortgage interest

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

on a loan that did not benefit your home (explained earlier).

used your home for business.

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

Attach your own statement showing the cost or other basis of

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

additions and improvements, used at least partially for business,

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

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

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

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

more information about home mortgage interest deduction

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

limitations, see Pub. 936.

Line 18

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 2017 operating expenses not included

on lines 9 through 20.

Line 24

Enter any amount from your 2016 Form 8829, line 42.

If you did not file a 2016 Form 8829, then your carryover of

prior year operating expenses is the amount of operating

expenses shown in Part IV of the last Form 8829, if any, that you

filed to claim a deduction for business use of the home.

For example, if you filed a 2015 Form 8829 and you used the

simplified method for 2016 but are not using it for 2017, enter the

amount from line 6a of your 2016 Simplified Method Worksheet

(or line 42 of your 2015 Form 8829).

-3-

Instructions For Form 8829 - Expenses For Business Use Of Your Home - 2017 Page 3

Related Articles

Related forms

Related Categories