A couple uses their house as a home office. They have a room set aside (150 sq feet) and the house has a total 1500 sq feet. They pay 12000 per year rental and 3000 utilities. I need assistance filling out their 8829 form.
Expenses for Business Use of Your Home File only with Schedule C (Form 1040). Use a separate Form 8829 for each home you used for business during the year Information about Form 8829 and its separate instructions is at www.irs.gov/form8829 8829 OMB No. 1545-0074 2014 Form Department of the Treasury Internal Revenue Service (99) Name(s) of proprietorfs) Russell Long Attachment Sequence No. 176 Your social security number 664985678 Part I 1 Area used regularly and exclusively for business, regularly for daycare, or for storage of Part of Your Home Used for Business inventory or product samples (see instructions). 150 1500 10 % . . 2 3 Divide line 1 by line 2. Enter the result as a percentage . . . . . . . . . . . . . For daycare facilities not used exclusively for business, go to line 4. All others, go to line 7, 4 Multiply days used for daycare during year by hours used per day 5 Total hours available for use during the year (365 days x 24 hours) (see instructions) 5 6 Divide line 4 by line 5. Enter the result as a decimal amount ...6 7 Business percentage. For daycare facilities not used exclusively for business, multiply line 6 by 4 hr 8,760 hr 10% line 3 (enter the result as a percentage). All others, enter the amount from line 3 Part II 8 Enter the amount from Schedule C, line 29, plus any gain derived from the business use of your home Figure Your Allowable Deduction minus any loss from the trade or business not derived from the business use of your home (see instructions) 8 135 See instructions for columns (a) and (b) before Direct Indirect ex completing lines 9-21 9 10 Deductible mortgage interest (see instructions) 10 11 Real estate taxes (see instructions) . . . . 13 13 Multiply line 12, column (b) by line 7 . . . . 14 Add line 12, column (a) and line 13 . 15 Subtract line 14 from line 8. If zero or less, enter -0 16 Excess mortgage interest (see instructions) 14 15 16 19 19 Repairs and maintenance .. 20 Utilities . 22 Add lines 16 through 21 . 23 Multiply line 22, column (b) by line 7......... . 24 Carryover of prior year operating expenses (see instructions) . . 25 Add line 22, column (a), line 23, and line 24 26 Allowable operating expenses. Enter the smaller of line 15 or line 25. 27 Limit on excess casualty losses and depreciation. Subtract line 26 from line 15 28 Excess casualty losses (see instructions) . 29 Depreciation of your home from line 41 below . 30 Carryover of prior year excess casualty losses and depreciation (see 23 24 ..25 26 27 .. . . 28 29 30 31 32 Allowable excess casualty losses and depreciation. Enter the smaller of line 27 or line 31 . . 33 Add lines 14, 26, and 32. 34 Casualty loss portion, if any, from lines 14 and 32 . Carry amount to Form 4684 (see instructions) 35 Allowable expenses for business use of your home. Subtract line 34 from line 33. Enter here 34 and on Schedule C, line 30. If your home was used for more than one business, see instructions35 Depreciation of Your Home
