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IRS.gov Website
Publication 587
taxmap/pubs/p587-009.htm#en_us_publink10003638

Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method)(p29)

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The Simplified Method Worksheet and the Daycare Facility Worksheet in this section are to be used by taxpayers filing Schedule F (Form 1040) or who are employees or partners, and who are using the simplified method to figure the deduction. If you are filing Schedule C (Form 1040) to report a business use of your home in your trade or business and you are using the simplified method to figure the deduction, use the Simplified Method Worksheet and Daycare Facility Worksheet in your Instructions for Schedule C for that business use.
The Area Adjustment Worksheet in this section may be used by any taxpayer using the simplified method to figure the deduction.
taxmap/pubs/p587-009.htm#en_us_publink10003764

(p29)

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taxmap/pubs/p587-009.htm#en_us_publink10003639
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Simplified Method Worksheet

Use this worksheet if you file Schedule F (Form 1040) or you are an employee or a partner, and you are using the simplified method to figure your deduction for business use of the home. Use a separate worksheet for each qualified business use of your home.
1.Enter the amount of the gross income limitation. See Instructions for the Simplified Method Worksheet1.
     
2.Allowable square footage for the qualified business use. Do not enter more than 300 square feet. See Instructions for the Simplified Method Worksheet 2.
     
3.Simplified method amount  
 a.Maximum allowable amount3a.$5
 b.For daycare facilities not used exclusively for business, enter the decimal amount from the Daycare Facility Worksheet; otherwise, enter 1.0 3b.
 c.Multiply line 3a by line 3b and enter result to 2 decimal places3c.
     
4.Multiply line 2 by line 3c4.
     
5.Allowable expenses using the simplified method. Enter the smaller of line 1 or line 4. If zero or less, enter -0-. See Where To Deduct, earlier, for where to enter this amount on your return 5.
     
6.Carryover of unallowed expenses from 2012 that are not allowed in 2013.  
 a.Operating expenses. Enter the amount, if any, from your 2012 Worksheet To Figure the Deduction for Business Use of Your Home, line 40 6a.
 b.Excess casualty losses and depreciation. Enter the amount, if any, from your 2012 Worksheet To Figure the Deduction for Business Use of Your Home, line 41 6b.
taxmap/pubs/p587-009.htm#en_us_publink10003765

(p29)

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Daycare Facility Worksheet (for simplified method)

1.Multiply days used for daycare during the year by hours used per day1.
     
2.Total hours available for use during the year. See Instructions for the Daycare Facility Worksheet2.
     
3.Divide line 1 by line 2. Enter the result as a decimal amount here and on line 3b of the Simplified Method Worksheet3.
taxmap/pubs/p587-009.htm#en_us_publink10003766

(p30)

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taxmap/pubs/p587-009.htm#en_us_publink10003610
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Area Adjustment Worksheet (for simplified method)

If you used the same area for your qualified business use for the entire year, complete only Part I; otherwise skip Part I, and complete Part II using lines 1 through 5 to help you figure the amount to enter for each month. All amounts reported on this worksheet must be in square feet.
Part I. Same area was used for the entire year.
1.Area used for this qualified business use.1.
      
2.Shared use. Complete line 2 if someone else also used the home to conduct business that qualifies for the deduction; otherwise, enter 300 on line 2d and go to line 3.   
 a.Area not shared. Enter portion of line 1 that was not shared with another person's qualified business use of the home2a.
 b.Total area shared with another person's qualified business use. Subtract line 2a from line 12b.
 c.Reasonable allocation of shared area to this qualified business use2c.
 d.Add lines 2a and 2c2d.
      
3.Multiple qualified business uses. Complete line 3 if you used the home for more than one qualified business use; otherwise, enter 300 on line 3d and go to line 4.   
 a.Total area of home used for all your qualified business uses3a.
 b.Maximum area3b.300
 c.Enter the smaller of line 3a and 3b3c.
 d.Reasonable allocation of line 3c to this qualified business use3d.
      
4.Maximum area4.300
      
5.Enter the smaller of lines 1, 2d, 3d, and 4. Enter the result on line 2 of the Simplified Method Worksheet5.
      
Part II. Area changed during the year or was used for only part of the year.
6.Complete lines 6a through 6n if you used the area for this qualified business use for part of the year or the area used for this qualifying business use changed during the year.
      
  (i) MonthNote. If your qualified business use was less than 15 days in a month, enter –0– in column (ii) for that month; otherwise, use lines 1 through 5 above for each month, and enter the amount you get for line 5 in column (ii) for that month.  (ii) Area
 a.January   
 b.February   
 c.March   
 d.April   
 e.May   
 f.June   
 g.July   
 h.August   
 i.September   
 j.October   
 k.November   
 l.December   
 m.Add lines 6a through 6l, column (ii)6m.
 n.Average monthly allowable square footage. Divide line 6m by 12. Enter the result on line 2 of the Simplified Method Worksheet.6n.
taxmap/pubs/p587-009.htm#en_us_publink10003643

Instructions for the Simplified Method Worksheet(p31)

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If you are an employee or a partner, or you file Schedule F (Form 1040), and you elected to use the simplified method, use the Simplified Method Worksheet. The following instructions explain how to complete this worksheet.
taxmap/pubs/p587-009.htm#en_us_publink10003767

Partners.(p31)

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See Partners under Where To Deduct, earlier, before completing the Simplified Method Worksheet.
Use the Simplified Method Worksheet to figure the amount of expenses you may deduct for a qualified business use of a home if you are electing to use the simplified method for that home. If you are not electing to use the simplified method, use Form 8829 or the Worksheet to Figure the Deduction for Business Use of Your Home, earlier, as appropriate.
taxmap/pubs/p587-009.htm#en_us_publink10003647

Line 1.(p31)

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If all gross income from your trade or business is from this qualified business use of your home, figure your gross income limitation as follows.
A.Enter the amount of gross income. If you file Schedule F (Form 1040), this amount would generally be the amount on line 9 of Schedule F. If you are an employee, your gross income is your wages related to the business use of your home
B.Enter any gain derived from the business use of your home and shown on Form 8949 (and included on Schedule D) or Form 4797
C.Add lines A and B
D.Business expenses not from business use of the home.
E.Enter the loss (as a positive number) shown on Form 8949 (and included on Schedule D) or Form 4797 that are allocable to the business, but not allocable to the use of the home
F.Add lines D and E
G.Gross income limitation. Subtract line F from line C. Enter the result here and on line 1
If some of the income is from a place of business other than your home, you must first determine the part of your gross income from the business use of your home. In making this determination, consider the amount of time you spend at each location as well as other facts. After determining the part of your gross income from the business use of your home, subtract from that amount the total expenses and any losses that are allocable to the business in which you use your home but that are not allocable to the use of the home.
Only include on line A the gross income from the business that is related to the business use of your home. Only include on line D and line E the deductible business expenses and losses that are related to the business activity in the home, but not related to the use of the home itself.
Note.If you had more than one home in which you conducted this business during the year, include only the income earned and the deductions attributable to that income during the period you owned the home for which you elected to use the simplified method.
taxmap/pubs/p587-009.htm#en_us_publink10003649

Line 2.(p31)

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If you used the same area for the entire year, enter the smaller of the square feet you actually used or 300. If you and your spouse conducted the business as a qualified joint venture, split the square feet between you and your spouse in the same manner you split your other tax attributes. If you shared space with someone else, used the home for business for only part of the year, or the area you used changed during the year, see Allowable area under Using the Simplified Method, earlier, before entering an amount on this line. Do not enter more than 300 on this line.
taxmap/pubs/p587-009.htm#en_us_publink10003651

Line 3b.(p31)

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If your qualified business use is providing daycare, you may need to account for the time that you used the same part of your home for other purposes. If you used the part of your home exclusively and regularly for providing daycare, enter 1.0 on line 3b. If you did not use the part of your home exclusively for providing daycare, complete the Daycare Facility Worksheet to figure what number to enter on line 3b.
taxmap/pubs/p587-009.htm#en_us_publink10003653

Line 6.(p31)

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Since you are using the simplified method this year, you cannot deduct the amounts you entered on lines 6a and 6b this year. If you figure your deduction for business use of the home using actual expenses next year, you will be able to include these expenses when you figure your deduction.
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(p31)

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taxmap/pubs/p587-009.htm#en_us_publink10003769

Instructions for the Daycare Facility Worksheet(p31)

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Use the Daycare Facility Worksheet to figure the percentage to use on line 3b of the Simplified Method Worksheet. If you do not use the area of your home exclusively for daycare, you must reduce the amount on line 3a before figuring your deduction using the simplified method.
Deposit
If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to complete this worksheet. This worksheet is only needed if you did not use the allowable area exclusively for daycare.
taxmap/pubs/p587-009.htm#en_us_publink10003656

Line 1.(p31)

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Enter the total number of hours the facility was used for daycare during the year.
taxmap/pubs/p587-009.htm#en_us_publink10003657

Example.(p31)

Your home is used Monday through Friday for 12 hours per day for 250 days during the year. It is also used on 50 Saturdays for 8 hours a day. Enter 3,400 hours on line 4 (3,000 hours for weekdays plus 400 hours for Saturdays).
taxmap/pubs/p587-009.htm#en_us_publink10003658

Line 2.(p31)

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If you used your home for daycare during the entire year, multiply 365 days (366 for a leap year) by 24 hours, and enter the result.
If you started or stopped using your home for daycare during the year, you must prorate the number of hours based on the number of days the home was available for daycare. Multiply 24 hours by the number of days available and enter that result.
taxmap/pubs/p587-009.htm#en_us_publink10003770

Instructions for the Area Adjustment Worksheet(p32)

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Use the Area Adjustment Worksheet to figure the area that you may use to figure your deduction.
taxmap/pubs/p587-009.htm#en_us_publink10003771

Line 2.(p32)

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If you and another person both used the home to conduct business that qualifies for the deduction, the same area cannot be used by both persons to figure the deduction.
taxmap/pubs/p587-009.htm#en_us_publink10003772

Line 2c.(p32)

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With the other people using the home for qualified business use, determine a reasonable allocation of shared space to your qualified business use. Do not include area that is claimed by another person.
taxmap/pubs/p587-009.htm#en_us_publink10003773

Line 3.(p32)

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If you used your home for more than one qualified business use, the total area that you can use to figure the deduction is still only 300 square feet, not 300 square feet per business use. You may allocate the square footage among your qualified business uses in any reasonable manner, but you may not allocate more square feet to a qualified business use than was actually used.
taxmap/pubs/p587-009.htm#en_us_publink10003774

Line 3d.(p32)

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Allocate part of line 3c to this qualified business use. Do not allocate more square feet to this qualified business use than was actually used during the year. Do not allocate any part of line 3c to this qualified business use that you allocated to another qualified business use.
taxmap/pubs/p587-009.htm#en_us_publink10003775

Line 6.(p32)

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If you only used the area for this qualified business use for part of the year or the area used for this qualifying business use changed during the year, then your need to figure the average monthly allowable square footage. To do this, use lines 1 through 5 of this worksheet for each month. For example, for January, complete lines 1 through 5 using the area and allocation information for January only; then, enter the result in line 6a, column (ii). If, in any month, you did not have 15 or more days of this qualified business use, enter -0- for that month. For example, if you did not begin using your home for this qualified business use until January 20, enter -0- in line 6a, column (ii).