Figure B Form 8829 Expenses for Business Use of Your Home 2007

Summary: This is a sample of the 2007 Form 8829 with items included as described in text. Additionally, the following line items are included:

  • Name(s) of proprietor(s) field contains Mary Lake
  • Your social security number field contains 412-00-1234
  • Under Part I: Part of Your Home Used for Business:
  • 1. Area used regularly and exclusively for business, regularly for day care, or for storage of inventory or product samples (see instructions) field contains 1,600
  • 2. Total area of home field contains 3,200
  • 3. Divide line 1 by line 2. Enter the result as a percentage field contains 50%
  • 4. Multiply days used for day care during year by hours used per day field contains 3,000 hours
  • 6. Divide line 4 by line 5. Enter the result as a decimal amount field contains .3425
  • 7. Business percentage. For day-care facilities not used exclusively for business, multiply line 6 by line 3 (enter the result as a percentage). All others, enter the amount from line 3 field contains 17.13%
  • Under Part II: Figure Your Allowable Deduction:
  • 14. Add line 12, column (a) and line 13 field contains 0
  • 15. Subtract line 14 from line 8. If zero or less, enter 0 field contains 25,000
  • 18. Rentfield contains 8,400
  • 19(a). Repairs and maintenance field contains 171
  • 20(b) Utilities, Indirect expenses field contains 850
  • 22(a) Add lines 16 through 21 Direct expenses field contains 171
  • 22(b) Add lines 16 through 21 Indirect expenses field contains 9,250
  • 23. Multiply line 22, column (b) by line 7. field contains 1,580
  • 25. Add line 22 in column (a) line 23, and line 24 field contains 1,756
  • 26. Allowable operating expenses. Enter the smaller of line 15 or line 25 field contains 1,756
  • 27. Limit on excess casualty losses and depreciation. Subtract line 26 from line 15 field contains 23,244
  • 31. Add lines 28 through 30 field contains 0
  • 32. Allowable excess casualty losses and depreciation. Enter the smaller of line 27 or line 31 field contains 0
  • 33. Add lines 14, 26, and 32field contains 1,756
  • 34. Casualty loss portion, if any, from line 14 and 321. Carry amount to Form 4684, Section B field contains 0
  • 35. Allowable expenses for business use of your home. Subtract line 34 from 33. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions.field contains 1,756

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