Form 8829 Expenses for Business Use of Your Home 2005. Summary: This is an example of the 2005 Form 8829 with items completed per text. Additionally, the following line items are
completed:
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“Name(s) of proprietor(s)” field contains John Stephens
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“Your Social Security Number” field contains 465-00-0001
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Under
“Part I: Part of Your Home Used for Business”:
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“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
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“2. Total area of home” field contains 2,000
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“3. Divide line 1 by line 2. Enter the result as a percentage” field contains 10%
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“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%
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Under
“Part II: Figure Your Allowable Deduction”:
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“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
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“12b. Add lines 9, 10, and 11 Indirect expenses” field contains 5,500
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“13b. Multiply line 12, column (b) by line 7 Indirect expenses” field contains 550
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“14. Add line 12, column (a) and line 13”field contains 550
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“15. Subtract line 14 from line 8. If zero or less, enter -0-”field contains 25,002
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“17b. Insurance Indirect expenses” field contains 400
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“18a. Repairs and maintenance Direct expenses” field contains 300
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“18b. Repairs and maintenance Indirect expenses” field contains 1,400
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“19b. Utilities Indirect expenses” field contains 1,800
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“21a. Add lines 16 through 20 Direct expenses” field contains 300
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“21b. Add lines 16 through 20 Indirect expenses” field contains 3,600
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“22. Multiply line 21, column (b) by line 7”field contains 360
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“23. Carryover of operating expenses from 2003 Form 8829, line 41” field contains 0
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“24. Add line 21 in column (a), line 22, and line 23”field contains 660
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“25. Allowable operating expenses. Enter the smaller of line 15 or line 24” field contains 660
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“28. Depreciation of your home from Part III below”field contains 271
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“30. Add lines 27 through 29”field contains 271
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“31. Allowable excess casualty losses and depreciation. Enter the smaller of line 26 or line 30” field contains 271
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“32. Add lines 14, 25, and 31”field contains 1,481
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“34. Allowable expenses for business use of your home. Subtract line 33 from line 32. Enter here and on Schedule C, line 30.
If your home was
used for more than one business, see instructions.”field contains 1,481
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Under
“Part III: Depreciation of Your Home”:
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“35. Enter the smaller of your home's adjusted basis or its fair market value (see instructions)” field contains 130,000
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“36. Value of land included on line 35” field contains 20,000
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“37. Basis of building. Subtract line 36 from line 35” field contains 110,000
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“38. Business basis of building. Multiply line 37 by line 7” field contains 11,000
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“39. Depreciation percentage (see instructions)” field contains 2.461%
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“40. Depreciation allowable (see instructions). Multiply line 38 by line 39. Enter here and on line 28 above.”field contains
271
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