Form 8829 Expenses for Business Use of Your Home 2007

Summary: This is an example of the 2007 Form 8829 with items completed per text. Additionally, the following line items are completed:

Name(s) of proprietor(s) field contains John Stephens

Your Social Security Number field contains 465-00-0001

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 200

2. Total area of home field contains 2,000

3. Divide line 1 by line 2. Enter the result as a percentage field contains 10%

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 10%

Under Part II: Figure Your Allowable Deduction:

8. Enter the amount from Schedule C, line 29, plus any net gain or (loss) derived from the business use of your home and shown on Schedule D or Form 4797. If more than one place of business, see instructions field contains 25,552

12b. Add lines 9, 10, and 11 Indirect expenses field contains 5,500

13b. Multiply line 12, column (b) by line 7 Indirect expenses field contains 550

14. Add line 12, column (a) and line 13field contains 550

15. Subtract line 14 from line 8. If zero or less, enter –0–field contains 25,002

17b. Insurance Indirect expenses field contains 400

19a. Repairs and maintenance Direct expenses field contains 300

20b. Repairs and maintenance Indirect expenses field contains 1,400

20b. Utilities Indirect expenses field contains 1,800

22a. Add lines 16 through 21 Direct expenses field contains 300

22b. Add lines 16 through 21 Indirect expenses field contains 3,600

23. Multiply line 22, column (b) by line 7field contains 360

24. Carryover of operating expenses from 2006 Form 8829, line 42 field contains 0

25. Add line 22 in column (a), line 23(b), and line 24(b)field contains 660

26. Allowable operating expenses. Enter the smaller of line 15 or line 25 field contains 660

27. Limit on excess casualty losses and depreciation. Subtract line 26 from line 15field contains 24,342

29. Depreciation of your home from Part III belowfield contains 271

31. Add lines 28 through 30field contains 271

32. Allowable excess casualty losses and depreciation. Enter the smaller of line 27 or line 31 field contains 271

33. Add lines 14, 26, and 32field contains 1,481

35. Allowable expenses for business use of your home. Subtract line 34 from line 33. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions.field contains 1,481

Under Part III: Depreciation of Your Home:

36. Enter the smaller of your home's adjusted basis or its fair market value (see instructions) field contains 130,000

37. Value of land included on line 36 field contains 20,000

38. Basis of building. Subtract line 37 from line 36 field contains 110,000

398. Business basis of building. Multiply line 38 by line 7 field contains 11,000

40. Depreciation percentage (see instructions) field contains 2.461%

41. Depreciation allowable (see instructions). Multiply line 39 by line 40. Enter here and on line 29 above.field contains 271

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