Mark Pari is a self-employed electrician who exclusively uses a room in his home to Tax Form perform the administrative functions related to his business. The room is 250 square feet of the 2,500 total square feet of his home. Mark’s income from his business before considering the cost of his home office is $62,890. He incurs the following expenses related to his home:

Assume that the home is worth $200,000. Mark’s basis is 140,000, the value of the land is 20% of basis, and the applicable depreciation percentage is 2.564%. Complete form 8829 using the above information. Mark’s Social Security number is 136-42-
5677. Forms and instructions can be downloaded from the IRS Web site (www.irs .gov/formspubs/index.html).

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Mortgage interest Property taxes Insurance $10,000 1,500 600 Gas and electric 1,800 Repairs and maintenance 500 Cable television 350 Phone ($15 per month for a separate House cleaning phone number for the office) Long-distance phone calls (business-related) Kitchen renovations 420 1,400 670 4,700