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, or boat. 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 day-care 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, a partner, or you file Schedule F (Form 1040), use the worksheet and its instructions, near the end of this publication, to help figure your deduction. If you file Schedule C (Form 1040), you must use Form 8829, Expenses for Business Use of Your Home. The Schedule C Example shows how to report the deduction on Form 8829.

The rules in this publication apply to individuals, trusts, estates, partnerships, and S corporations. They do not apply to corporations (other than S corporations). There are no special rules for the business use of a home by a partner or S corporation shareholder.

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 e-mail us while visiting our web site at
www.irs.gov.

You can write to us at the following address:

Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
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.

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