Tax Help Archives  
Pub. 587, Business Use of Your Home 2004 Tax Year

Introductory Material

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

What's New

Standard mileage rate for 2004. The standard mileage rate for the cost of operating your car, van, pickup, or panel truck for 2004 is 37.5 cents a mile for all business miles.

Standard mileage rate available for small fleets. Beginning in 2004, the business standard mileage rate may be used for as many as four vehicles that you own or lease and use simultaneously.

Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Introduction

The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property, which provides basic living accommodations. It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. However, it does not include any part of your property used exclusively as a hotel or inn.

This publication includes information on the following.

  • The requirements for qualifying to deduct expenses for the business use of your home (including special rules for storing inventory or product samples).

  • Types of expenses you can deduct.

  • How to figure the deduction (including depreciation of your home).

  • Special rules for daycare providers.

  • Selling a home that was used partly for business.

  • Deducting expenses for furniture and equipment used in your business.

  • Records you should keep.

  • Where to deduct your expenses.

If you are an employee or a partner, or you file Schedule F (Form 1040), Profit or Loss From Farming, use the worksheet on page 24 and its instructions, which begin on page 25, to help figure your deduction. If you file Schedule C (Form 1040), Profit or Loss From Business, you must generally use Form 8829, Expenses for Business Use of Your Home. The Schedule C Example on pages 19 through 23 shows how to report the deduction on Form 8829.

The rules in this publication apply to individuals.

If you need information on deductions for renting out your property, see Publication 527, Residential Rental Property.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

  You can write to us at the following address:


Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  You can email us at *[email protected]. (The asterisk must be included in the address.) Please put “Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Tax questions.   If you have a tax question, visit www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either of the addresses listed above.

Ordering forms and publications.   Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to one of the three addresses shown under How To Get Tax Help in the back of this publication.

Useful Items - You may want to see:

Publications

  • 523 Selling Your Home

  • 551 Basis of Assets

  • 583 Starting a Business and Keeping Records

  • 946 How To Depreciate Property

Forms (and Instructions)

  • Schedule C (Form 1040)
    Profit or Loss from Business

  • 2106
    Employee Business Expenses

  • 2106-EZ
    Unreimbursed Employee Business Expenses

  • 4562
    Depreciation and Amortization

  • 8829
    Expenses for Business Use of Your Home

See How To Get Tax Help near the end of this publication for information about getting publications and forms.

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