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File My State Taxes Free

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File My State Taxes Free

File my state taxes free Index Symbols "Hours of service" limits, Individuals subject to hours of service limits. File my state taxes free Form 2106, Hours of service limits. File my state taxes free 50% limit on meals, 50% limit on meals. File my state taxes free A Accountable plans, Accountable Plans, Per diem allowance more than federal rate. File my state taxes free Accounting to employer, Accountable Plans Adequate accounting, Adequate Accounting Independent contractors, Adequate accounting. File my state taxes free Adequate records, What Are Adequate Records? Advertising Car display, Advertising display on car. File my state taxes free Expenses, 3 - Advertising expenses. File my state taxes free Signs, display racks, or other promotional material to be used on recipient's business premises, Exceptions. File my state taxes free Airline clubs, Club dues and membership fees. File my state taxes free Allocating costs, Separating costs. File my state taxes free , Separating costs. File my state taxes free , Allocating between business and nonbusiness. File my state taxes free , Allocating total cost. File my state taxes free Allowance (see Reimbursements) Armed forces Assigned overseas, Members of the Armed Forces. File my state taxes free Assistance (see Tax help) Associated entertainment, Associated Test Athletic clubs, Club dues and membership fees. File my state taxes free B Basis of car, Basis. File my state taxes free (see also Depreciation of car) Bona fide business purpose, Bona fide business purpose. File my state taxes free Box seats at entertainment events, Skyboxes and other private luxury boxes. File my state taxes free Business travel, Trip Primarily for Business Outside U. File my state taxes free S. File my state taxes free , Travel Entirely for Business or Considered Entirely for Business Business use of car, Business and personal use. File my state taxes free More-than-50%-use test. File my state taxes free , More-than-50%-use test. File my state taxes free Qualified business use, Qualified business use. File my state taxes free C Canceled checks As evidence of business expenses, Canceled check. File my state taxes free Car expenses, Car Expenses, Reporting inclusion amounts. File my state taxes free Actual expenses, Actual Car Expenses Allowances for, Per Diem and Car Allowances, Allowance more than the federal rate. File my state taxes free Business and personal use, Business and personal use. File my state taxes free Combining expenses, Car expenses. File my state taxes free Disposition of car, Disposition of a Car Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). File my state taxes free Form 2106, Car expenses. File my state taxes free Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. File my state taxes free Mileage rate (see Standard mileage rate) Taxes paid on car, Taxes paid on your car. File my state taxes free Traffic tickets, Fines and collateral. File my state taxes free Car pools, Car pools. File my state taxes free Car rentals, Reporting inclusion amounts. File my state taxes free Form 2106, Car rentals. File my state taxes free Car, defined, Car defined. File my state taxes free Car, truck, or van rentals, Leasing a Car, Reporting inclusion amounts. File my state taxes free Casualty and theft losses Cars, Casualty and theft losses. File my state taxes free Depreciation, Casualty or theft. File my state taxes free Charitable organizations Benefit events for, Exception for events that benefit charitable organizations. File my state taxes free Sports events to benefit, 5 - Charitable sports event. File my state taxes free Club dues, Club dues and membership fees. File my state taxes free Commuting expenses, Commuting expenses. File my state taxes free Conventions, Conventions, Meetings at conventions. File my state taxes free Country clubs, Club dues and membership fees. File my state taxes free Cruise ships, Cruise Ships D Daily business mileage and expense log (Table 6-2), Table 5-2. File my state taxes free Daily Business Mileage and Expense Log Name: Depreciation of car, Depreciation and section 179 deductions. File my state taxes free (see also Section 179 deductions) Adjustment for using standard mileage rate, Depreciation adjustment when you used the standard mileage rate. File my state taxes free Basis, Basis. File my state taxes free Sales taxes, Sales taxes. File my state taxes free Unrecovered basis, How to treat unrecovered basis. File my state taxes free Casualty or theft, effect, Casualty or theft. File my state taxes free Deduction, Depreciation and section 179 deductions. File my state taxes free , Depreciation deduction for the year of disposition. File my state taxes free Excess depreciation, Excess depreciation. File my state taxes free Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). File my state taxes free Trade-in, effect, Car trade-in. File my state taxes free , Trade-in. File my state taxes free Trucks and vans, Trucks and vans. File my state taxes free Depreciation of Car Section 179 deduction, Section 179 deduction. File my state taxes free Directly-related entertainment, Directly-Related Test Disabled employees Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Documentary evidence, Documentary evidence. File my state taxes free E Employer-provided vehicles, Employer-provided vehicle. File my state taxes free Reporting requirements, Vehicle Provided by Your Employer Entertainment expenses, Entertainment, Individuals subject to hours of service limits. File my state taxes free , Gift or entertainment. File my state taxes free 50% limit, Directly before or after business discussion. File my state taxes free Determination of applicability (Figure A), 50% Limit Associated test, Associated Test Deductible, What Entertainment Expenses Are Deductible?, Expenses for spouses. File my state taxes free Summary (Table 2-1), Exception for events that benefit charitable organizations. File my state taxes free Directly-related test, Directly-Related Test Entertainment, defined, Entertainment. File my state taxes free Form 2106, Meal and entertainment expenses. File my state taxes free Tickets (see Tickets) Entertainment facilities Expenses for use of, Entertainment facilities. File my state taxes free Estimates of expenses, How To Prove Expenses Exceptions to the 50% Limit, Exceptions to the 50% Limit Excess reimbursements (see Reimbursements) Extravagant expenses, Lavish or extravagant. File my state taxes free , Lavish or extravagant expenses. File my state taxes free F Fair market value of car, Fair market value. File my state taxes free Farmers Form 1040, Schedule F, Self-employed. File my state taxes free Federal crime investigations or prosecutions Federal employees engaged in, Exception for federal crime investigations or prosecutions. File my state taxes free Federal rate for per diem, Standard Meal Allowance, The federal rate. File my state taxes free Fee-basis officials, Officials Paid on a Fee Basis Fees you pay, Parking fees. File my state taxes free Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). File my state taxes free Form 1040, Schedule C, Self-employed. File my state taxes free Form 1040, Schedule F, Self-employed. File my state taxes free Form 2106, How to choose. File my state taxes free , Employees. File my state taxes free , Full value included in your income. File my state taxes free , Reporting your expenses under a nonaccountable plan. File my state taxes free , Completing Forms 2106 and 2106-EZ Form 2106-EZ, Form 2106-EZ. File my state taxes free Form 4562, Self-employed. File my state taxes free Form 4797, Excess depreciation. File my state taxes free Form W-2 Employer-provided vehicles, Value reported on Form W-2. File my state taxes free Reimbursement of personal expenses, Reimbursement for personal expenses. File my state taxes free Statutory employees, Statutory employees. File my state taxes free Free tax services, Free help with your tax return. File my state taxes free G Gifts, Gift or entertainment. File my state taxes free , Gifts $25 limit, $25 limit. File my state taxes free Combining for recordkeeping purposes, Gift expenses. File my state taxes free Reporting requirements, Gifts. File my state taxes free Golf clubs, Club dues and membership fees. File my state taxes free H Hauling tools, Hauling tools or instruments. File my state taxes free Help (see Tax help) High-low method Introduction, High-low method. File my state taxes free Transition rules, High-low method. File my state taxes free High-low rate method, High-low rate. File my state taxes free Home office, Office in the home. File my state taxes free Hotel clubs, Club dues and membership fees. File my state taxes free I Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Incidental expenses Defined, Incidental expenses. File my state taxes free Gifts, Incidental costs. File my state taxes free No meals, incidentals only, Incidental-expenses-only method. File my state taxes free Income-producing property, Income-producing property. File my state taxes free Incomplete records, What If I Have Incomplete Records? Indefinite job assignment, Temporary assignment vs. File my state taxes free indefinite assignment. File my state taxes free Independent contractors, Rules for Independent Contractors and Clients Interest on car loans, Interest on car loans. File my state taxes free Itinerants, Tax Home L Lavish or extravagant expenses, Lavish or extravagant. File my state taxes free , Lavish or extravagant expenses. File my state taxes free Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. File my state taxes free Luxury private boxes at entertainment events, Skyboxes and other private luxury boxes. File my state taxes free Luxury water travel, Luxury Water Travel M MACRS (Modified Accelerated Cost Recovery System), Modified Accelerated Cost Recovery System (MACRS). File my state taxes free 2011 chart (Table 4-1), Table 4-1. File my state taxes free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. File my state taxes free ) Main place of business or work, Main place of business or work. File my state taxes free Married taxpayers Performing artists, Special rules for married persons. File my state taxes free Meal expenses, Meals 50% limit, 50% Limit Determination of applicability (Figure A), 50% Limit Exceptions, Exceptions to the 50% Limit Actual cost method, Actual Cost Form 2106, Meal and entertainment expenses. File my state taxes free Major cities with higher allowances, Amount of standard meal allowance. File my state taxes free Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. File my state taxes free , The standard meal allowance. File my state taxes free Meals, entertainment-related, A meal as a form of entertainment. File my state taxes free Mileage rate (see Standard mileage rate) Military (see Armed forces) Missing children, photographs of, Reminder Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). File my state taxes free 2011 chart (Table 4-1), Table 4-1. File my state taxes free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. File my state taxes free ) N Nonaccountable plans, Nonaccountable Plans O Office in the home, Office in the home. File my state taxes free Officials paid on fee basis, Officials Paid on a Fee Basis Overseas travel Conventions, Conventions Held Outside the North American Area Meal allowance, Standard meal allowance for areas outside the continental United States. File my state taxes free Part of trip outside U. File my state taxes free S. File my state taxes free , Part of Trip Outside the United States P Parking fees, Parking fees. File my state taxes free , Parking fees and tolls. File my state taxes free Per diem allowances, Per Diem and Car Allowances, Allowance more than the federal rate. File my state taxes free Defined, Reimbursement, allowance, or advance. File my state taxes free Federal rate for, The federal rate. File my state taxes free Per diem rates High-cost localities, High-low method. File my state taxes free High-low method, High-low method. File my state taxes free Regular federal method, Regular federal per diem rate method. File my state taxes free Standard rate for unlisted localities, High-low method. File my state taxes free , Regular federal per diem rate method. File my state taxes free Transition rules, High-low method. File my state taxes free , Federal per diem rate method. File my state taxes free Performing artists, Expenses of Certain Performing Artists Personal property taxes, Personal property taxes. File my state taxes free , Taxes paid on your car. File my state taxes free Personal trips, Trip Primarily for Personal Reasons Outside U. File my state taxes free S. File my state taxes free , Travel Primarily for Personal Reasons Placed in service, cars, Placed in service. File my state taxes free Probationary work period, Probationary work period. File my state taxes free Proving business purpose, Proving business purpose. File my state taxes free Public transportation Outside of U. File my state taxes free S. File my state taxes free travel, Public transportation. File my state taxes free Publications (see Tax help) R Recordkeeping requirements, Recordkeeping, Examples of Records Adequate records, What Are Adequate Records? Daily business mileage and expense log (Table 6-2), Table 5-2. File my state taxes free Daily Business Mileage and Expense Log Name: Destroyed records, Destroyed records. File my state taxes free How to prove expenses (Table 5-1), Table 5-1. File my state taxes free How To Prove Certain Business Expenses Incomplete records, What If I Have Incomplete Records? Reimbursed expenses, Reimbursed for expenses. File my state taxes free Sampling to prove expenses, Sampling. File my state taxes free Separating and combining expenses, Separating and Combining Expenses, If your return is examined. File my state taxes free Three-year period of retention, How Long To Keep Records and Receipts Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Regular federal method Introduction, Regular federal per diem rate method. File my state taxes free Transition rules, Federal per diem rate method. File my state taxes free Reimbursements, Less than full value included in your income. File my state taxes free , Contractor does not adequately account. File my state taxes free Accountable plans, Accountable Plans Excess, Returning Excess Reimbursements, Nonaccountable Plans Form 2106, Reimbursements. File my state taxes free Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Reimbursement of nondeductible expenses. File my state taxes free Personal expenses, Reimbursement for personal expenses. File my state taxes free Recordkeeping, Reimbursed for expenses. File my state taxes free Reporting (Table 6-1), Table 6-1. File my state taxes free Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Unclaimed, Where To Report Reporting requirements, How To Report Per diem or car allowance, Reporting your expenses with a per diem or car allowance. File my state taxes free Reimbursements, Reimbursements, Contractor does not adequately account. File my state taxes free Reservists Transportation expenses, Armed Forces reservists. File my state taxes free Traveling more than 100 miles from home, Armed Forces Reservists Traveling More Than 100 Miles From Home Returning excess reimbursements, Returning Excess Reimbursements Rural mail carriers, Rural mail carriers. File my state taxes free S Section 179 deduction Amended return, How to choose. File my state taxes free Deduction, Section 179 Deduction Limits, Limits. File my state taxes free Self-employed persons, 2 - Self-employed. File my state taxes free Reporting requirements, Self-employed. File my state taxes free Skyboxes, Skyboxes and other private luxury boxes. File my state taxes free Spouse, expenses for, Travel expenses for another individual. File my state taxes free , Expenses for spouses. File my state taxes free Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. File my state taxes free , The standard meal allowance. File my state taxes free Standard mileage rate, What's New, Standard Mileage Rate, The standard mileage rate. File my state taxes free Depreciation adjustment for using, Depreciation adjustment when you used the standard mileage rate. File my state taxes free Form 2106, Standard mileage rate. File my state taxes free Statutory employees, Statutory employees. File my state taxes free T Tables and figures 50% limit determination (Figure A), 50% Limit Daily business mileage and expense log (Table 6-2), Table 5-2. File my state taxes free Daily Business Mileage and Expense Log Name: Entertainment expenses, determination of deductibility (Table 2-1), Table 2-1. File my state taxes free When Are Entertainment Expenses Deductible? Maximum depreciation deduction for cars table, Maximum Depreciation Deduction for Cars Modified Accelerated Cost Recovery System (MACRS) 2011 chart (Table 4-1), Table 4-1. File my state taxes free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. File my state taxes free ) Proving expenses (Table 5-1), Table 5-1. File my state taxes free How To Prove Certain Business Expenses Reporting reimbursements (Table 6-1), Table 6-1. File my state taxes free Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Transportation expenses, determination of deductibility (Figure B), Gift or entertainment. File my state taxes free , Illustration of transportation expenses. File my state taxes free Travel expenses, determination of deductibility (Table 1-1), Table 1-1. File my state taxes free Travel Expenses You Can Deduct Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Tax help, How To Get Tax Help Tax home, determination of, Tax Home Temporary job assignments, Temporary Assignment or Job Temporary work location, Temporary work location. File my state taxes free Tickets, Entertainment tickets. File my state taxes free , Gift or entertainment. File my state taxes free Season or series tickets, Season or series tickets. File my state taxes free Traffic violations, Fines and collateral. File my state taxes free Tools Hauling tools, Hauling tools or instruments. File my state taxes free Trade association meetings, Trade association meetings. File my state taxes free Trade-in of car, Car trade-in. File my state taxes free , Trade-in. File my state taxes free Traffic tickets, Fines and collateral. File my state taxes free Transients, Tax Home Transition rules, Transition Rules Example High-low method, High-low method. File my state taxes free High-low method, High-low method. File my state taxes free Regular federal method, Federal per diem rate method. File my state taxes free Transportation expenses, Transportation, Depreciation deduction for the year of disposition. File my state taxes free Car expenses, Car Expenses, Reporting inclusion amounts. File my state taxes free Deductible (Figure B), Gift or entertainment. File my state taxes free , Illustration of transportation expenses. File my state taxes free five or more cars, Five or more cars. File my state taxes free Form 2106, Transportation expenses. File my state taxes free Transportation workers, Special rate for transportation workers. File my state taxes free , Individuals subject to hours of service limits. File my state taxes free Travel advance, Reimbursement, allowance, or advance. File my state taxes free , Travel advance. File my state taxes free (see also Reimbursements) Travel expenses, Travel, Cruise Ships Another individual accompanying taxpayer, Travel expenses for another individual. File my state taxes free Away from home, Traveling Away From Home, Tax Home Deductible, What Travel Expenses Are Deductible?, Cruise Ships Summary of (Table 1-1), Table 1-1. File my state taxes free Travel Expenses You Can Deduct Defined, Travel expenses defined. File my state taxes free Going home on days off, Going home on days off. File my state taxes free In U. File my state taxes free S. File my state taxes free , Travel in the United States Lodging, Standard Meal Allowance Luxury water travel, Luxury Water Travel Outside U. File my state taxes free S. File my state taxes free , Travel Outside the United States Travel to family home, Tax Home Different From Family Home Trucks and vans Depreciation, Trucks and vans. File my state taxes free Transportation workers, Individuals subject to hours of service limits. File my state taxes free Transportation workers' expenses, Special rate for transportation workers. File my state taxes free Two places of work, Two places of work. File my state taxes free U Unclaimed reimbursements, Where To Report Unions Trips from union hall to place of work, Union members' trips from a union hall. File my state taxes free Unrecovered basis of car, How to treat unrecovered basis. File my state taxes free V Volunteers, Volunteers. File my state taxes free W Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Prev  Up     Home   More Online Publications
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File my state taxes free Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. File my state taxes free Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. File my state taxes free However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. File my state taxes free Even then, the deductible amount of these types of expenses may be limited. File my state taxes free Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. File my state taxes free To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). File my state taxes free Additional tests for employee use. File my state taxes free   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. File my state taxes free You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. File my state taxes free If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. File my state taxes free Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. File my state taxes free The area used for business can be a room or other separately identifiable space. File my state taxes free The space does not need to be marked off by a permanent partition. File my state taxes free You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. File my state taxes free Example. File my state taxes free You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. File my state taxes free Your family also uses the den for recreation. File my state taxes free The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. File my state taxes free Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. File my state taxes free You use part of your home for the storage of inventory or product samples (discussed next). File my state taxes free You use part of your home as a daycare facility, discussed later under Daycare Facility . File my state taxes free Note. File my state taxes free With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. File my state taxes free Storage of inventory or product samples. File my state taxes free    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. File my state taxes free However, you must meet all the following tests. File my state taxes free You sell products at wholesale or retail as your trade or business. File my state taxes free You keep the inventory or product samples in your home for use in your trade or business. File my state taxes free Your home is the only fixed location of your trade or business. File my state taxes free You use the storage space on a regular basis. File my state taxes free The space you use is a separately identifiable space suitable for storage. File my state taxes free Example. File my state taxes free Your home is the only fixed location of your business of selling mechanics' tools at retail. File my state taxes free You regularly use half of your basement for storage of inventory and product samples. File my state taxes free You sometimes use the area for personal purposes. File my state taxes free The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. File my state taxes free Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. File my state taxes free Incidental or occasional business use is not regular use. File my state taxes free You must consider all facts and circumstances in determining whether your use is on a regular basis. File my state taxes free Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. File my state taxes free If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. File my state taxes free Example. File my state taxes free You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. File my state taxes free You do not make investments as a broker or dealer. File my state taxes free So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. File my state taxes free Principal Place of Business You can have more than one business location, including your home, for a single trade or business. File my state taxes free To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. File my state taxes free To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. File my state taxes free Your home office will qualify as your principal place of business if you meet the following requirements. File my state taxes free You use it exclusively and regularly for administrative or management activities of your trade or business. File my state taxes free You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. File my state taxes free If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. File my state taxes free However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. File my state taxes free Administrative or management activities. File my state taxes free   There are many activities that are administrative or managerial in nature. File my state taxes free The following are a few examples. File my state taxes free Billing customers, clients, or patients. File my state taxes free Keeping books and records. File my state taxes free Ordering supplies. File my state taxes free Setting up appointments. File my state taxes free Forwarding orders or writing reports. File my state taxes free Administrative or management activities performed at other locations. File my state taxes free   The following activities performed by you or others will not disqualify your home office from being your principal place of business. File my state taxes free You have others conduct your administrative or management activities at locations other than your home. File my state taxes free (For example, another company does your billing from its place of business. File my state taxes free ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. File my state taxes free You occasionally conduct minimal administrative or management activities at a fixed location outside your home. File my state taxes free You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. File my state taxes free (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. File my state taxes free ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. File my state taxes free Please click here for the text description of the image. File my state taxes free Can you deduct business use of the home expenses? Example 1. File my state taxes free John is a self-employed plumber. File my state taxes free Most of John's time is spent at customers' homes and offices installing and repairing plumbing. File my state taxes free He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. File my state taxes free John writes up estimates and records of work completed at his customers' premises. File my state taxes free He does not conduct any substantial administrative or management activities at any fixed location other than his home office. File my state taxes free John does not do his own billing. File my state taxes free He uses a local bookkeeping service to bill his customers. File my state taxes free John's home office qualifies as his principal place of business for deducting expenses for its use. File my state taxes free He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. File my state taxes free His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. File my state taxes free He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. File my state taxes free Example 2. File my state taxes free Pamela is a self-employed sales representative for several different product lines. File my state taxes free She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. File my state taxes free She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. File my state taxes free Pamela's business is selling products to customers at various locations throughout her territory. File my state taxes free To make these sales, she regularly visits customers to explain the available products and take orders. File my state taxes free Pamela's home office qualifies as her principal place of business for deducting expenses for its use. File my state taxes free She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. File my state taxes free The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. File my state taxes free She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. File my state taxes free Example 3. File my state taxes free Paul is a self-employed anesthesiologist. File my state taxes free He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. File my state taxes free One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. File my state taxes free Paul very rarely uses the office the hospital provides. File my state taxes free He uses a room in his home that he has converted to an office. File my state taxes free He uses this room exclusively and regularly to conduct all the following activities. File my state taxes free Contacting patients, surgeons, and hospitals regarding scheduling. File my state taxes free Preparing for treatments and presentations. File my state taxes free Maintaining billing records and patient logs. File my state taxes free Satisfying continuing medical education requirements. File my state taxes free Reading medical journals and books. File my state taxes free Paul's home office qualifies as his principal place of business for deducting expenses for its use. File my state taxes free He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. File my state taxes free His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. File my state taxes free His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. File my state taxes free He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. File my state taxes free Example 4. File my state taxes free Kathleen is employed as a teacher. File my state taxes free She is required to teach and meet with students at the school and to grade papers and tests. File my state taxes free The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. File my state taxes free The school does not require her to work at home. File my state taxes free Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. File my state taxes free She uses this home office exclusively and regularly for the administrative duties of her teaching job. File my state taxes free Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. File my state taxes free Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. File my state taxes free More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. File my state taxes free Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. File my state taxes free You must use the home office exclusively and regularly for one or more of the following purposes. File my state taxes free As the principal place of business for one or more of your trades or businesses. File my state taxes free As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. File my state taxes free If your home office is a separate structure, in connection with one or more of your trades or businesses. File my state taxes free You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. File my state taxes free e. File my state taxes free , personal) activities. File my state taxes free If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. File my state taxes free See Rental to employer , later, if you rent part of your home to your employer. File my state taxes free Example. File my state taxes free Tracy White is employed as a teacher. File my state taxes free Her principal place of work is the school, which provides her office space to do her school work. File my state taxes free She also has a mail order jewelry business. File my state taxes free All her work in the jewelry business is done in her home office and the office is used exclusively for that business. File my state taxes free If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. File my state taxes free If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. File my state taxes free As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. File my state taxes free She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. File my state taxes free Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. File my state taxes free You physically meet with patients, clients, or customers on your premises. File my state taxes free Their use of your home is substantial and integral to the conduct of your business. File my state taxes free Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. File my state taxes free Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. File my state taxes free The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. File my state taxes free Example. File my state taxes free June Quill, a self-employed attorney, works 3 days a week in her city office. File my state taxes free She works 2 days a week in her home office used only for business. File my state taxes free She regularly meets clients there. File my state taxes free Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. File my state taxes free Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. File my state taxes free The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. File my state taxes free Example. File my state taxes free John Berry operates a floral shop in town. File my state taxes free He grows the plants for his shop in a greenhouse behind his home. File my state taxes free He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. File my state taxes free Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. File my state taxes free When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. File my state taxes free Electing to use the simplified method. File my state taxes free   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. File my state taxes free You choose whether or not to figure your deduction using the simplified method each taxable year. File my state taxes free See Using the Simplified Method , later. File my state taxes free Rental to employer. File my state taxes free   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. File my state taxes free You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. File my state taxes free However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. File my state taxes free Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. File my state taxes free You will also need to figure the percentage of your home used for business and the limit on the deduction. File my state taxes free If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. File my state taxes free If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. File my state taxes free Part-year use. File my state taxes free   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. File my state taxes free For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. File my state taxes free Expenses related to tax-exempt income. File my state taxes free   Generally, you cannot deduct expenses that are related to tax-exempt allowances. File my state taxes free However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. File my state taxes free No deduction is allowed for other expenses related to the tax-exempt allowance. File my state taxes free   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. File my state taxes free Actual Expenses You must divide the expenses of operating your home between personal and business use. File my state taxes free The part of a home operating expense you can use to figure your deduction depends on both of the following. File my state taxes free Whether the expense is direct, indirect, or unrelated. File my state taxes free The percentage of your home used for business. File my state taxes free Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. File my state taxes free Table 1. File my state taxes free Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. File my state taxes free Deductible in full. File my state taxes free *   Examples:  Painting or repairs  only in the area  used for business. File my state taxes free Exception: May be only partially  deductible in a daycare facility. File my state taxes free See Daycare Facility , later. File my state taxes free Indirect Expenses for  keeping up and running your  entire home. File my state taxes free Deductible based on the percentage of your home used for business. File my state taxes free *   Examples:  Insurance, utilities, and  general repairs. File my state taxes free   Unrelated Expenses only for  the parts of your  home not used  for business. File my state taxes free Not deductible. File my state taxes free   Examples:  Lawn care or painting  a room not used  for business. File my state taxes free   *Subject to the deduction limit, discussed later. File my state taxes free Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. File my state taxes free Certain expenses are deductible whether or not you use your home for business. File my state taxes free If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. File my state taxes free These expenses include the following. File my state taxes free Real estate taxes. File my state taxes free Qualified mortgage insurance premiums. File my state taxes free Deductible mortgage interest. File my state taxes free Casualty losses. File my state taxes free Other expenses are deductible only if you use your home for business. File my state taxes free You can use the business percentage of these expenses to figure your total business use of the home deduction. File my state taxes free These expenses generally include (but are not limited to) the following. File my state taxes free Depreciation (covered under Depreciating Your Home , later). File my state taxes free Insurance. File my state taxes free Rent paid for the use of property you do not own but use in your trade or business. File my state taxes free Repairs. File my state taxes free Security system. File my state taxes free Utilities and services. File my state taxes free Real estate taxes. File my state taxes free   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. File my state taxes free   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. File my state taxes free Deductible mortgage interest. File my state taxes free   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. File my state taxes free You can include interest on a second mortgage in this computation. File my state taxes free If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. File my state taxes free For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. File my state taxes free Qualified mortgage insurance premiums. File my state taxes free   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. File my state taxes free You can include premiums for insurance on a second mortgage in this computation. File my state taxes free If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. File my state taxes free For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). File my state taxes free Casualty losses. File my state taxes free    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. File my state taxes free A direct expense is the loss on the portion of the property you use only in your business. File my state taxes free Use the entire loss to figure the business use of the home deduction. File my state taxes free An indirect expense is the loss on property you use for both business and personal purposes. File my state taxes free Use only the business portion to figure the deduction. File my state taxes free An unrelated expense is the loss on property you do not use in your business. File my state taxes free Do not use any of the loss to figure the deduction. File my state taxes free Example. File my state taxes free You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. File my state taxes free A storm damages your roof. File my state taxes free This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. File my state taxes free You would complete Form 4684, Casualties and Thefts, to report your loss. File my state taxes free You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. File my state taxes free Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. File my state taxes free Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. File my state taxes free Forms and worksheets to use. File my state taxes free   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. File my state taxes free If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. File my state taxes free You will also need to get Form 4684. File my state taxes free More information. File my state taxes free   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. File my state taxes free Insurance. File my state taxes free   You can deduct the cost of insurance that covers the business part of your home. File my state taxes free However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. File my state taxes free You can deduct the business percentage of the part that applies to the following year in that year. File my state taxes free Rent. File my state taxes free   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. File my state taxes free To figure your deduction, multiply your rent payments by the percentage of your home used for business. File my state taxes free   If you own your home, you cannot deduct the fair rental value of your home. File my state taxes free However, see Depreciating Your Home , later. File my state taxes free Repairs. File my state taxes free   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. File my state taxes free For example, a furnace repair benefits the entire home. File my state taxes free If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. File my state taxes free   Repairs keep your home in good working order over its useful life. File my state taxes free Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. File my state taxes free However, repairs are sometimes treated as a permanent improvement and are not deductible. File my state taxes free See Permanent improvements , later, under Depreciating Your Home. File my state taxes free Security system. File my state taxes free   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. File my state taxes free You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. File my state taxes free Utilities and services. File my state taxes free   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. File my state taxes free However, if you use part of your home for business, you can deduct the business part of these expenses. File my state taxes free Generally, the business percentage for utilities is the same as the percentage of your home used for business. File my state taxes free Telephone. File my state taxes free   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. File my state taxes free e. File my state taxes free , landline) is a nondeductible personal expense. File my state taxes free However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. File my state taxes free Do not include these expenses as a cost of using your home for business. File my state taxes free Deduct these charges separately on the appropriate form or schedule. File my state taxes free For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). File my state taxes free Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. File my state taxes free Depreciation is an allowance for the wear and tear on the part of your home used for business. File my state taxes free You cannot depreciate the cost or value of the land. File my state taxes free You recover its cost when you sell or otherwise dispose of the property. File my state taxes free Before you figure your depreciation deduction, you need to know the following information. File my state taxes free The month and year you started using your home for business. File my state taxes free The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. File my state taxes free The cost of any improvements before and after you began using the property for business. File my state taxes free The percentage of your home used for business. File my state taxes free See Business Percentage , later. File my state taxes free Adjusted basis defined. File my state taxes free   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. File my state taxes free For a discussion of adjusted basis, see Publication 551. File my state taxes free Permanent improvements. File my state taxes free   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. File my state taxes free Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. File my state taxes free    You must carefully distinguish between repairs and improvements. File my state taxes free See Repairs , earlier, under Actual Expenses. File my state taxes free You also must keep accurate records of these expenses. File my state taxes free These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. File my state taxes free However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. File my state taxes free Example. File my state taxes free You buy an older home and fix up two rooms as a beauty salon. File my state taxes free You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. File my state taxes free Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. File my state taxes free However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. File my state taxes free You cannot deduct any portion of it as a repair expense. File my state taxes free Adjusting for depreciation deducted in earlier years. File my state taxes free   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. File my state taxes free If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. File my state taxes free If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. File my state taxes free   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. File my state taxes free   If you deducted the incorrect amount of depreciation, see Publication 946. File my state taxes free Fair market value defined. File my state taxes free   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. File my state taxes free Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. File my state taxes free Figuring the depreciation deduction for the current year. File my state taxes free   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. File my state taxes free   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). File my state taxes free Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. File my state taxes free For more information on MACRS and other methods of depreciation, see Publication 946. File my state taxes free   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). File my state taxes free The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. File my state taxes free The adjusted basis of your home (excluding land) on the date you began using your home for business. File my state taxes free The fair market value of your home (excluding land) on the date you began using your home for business. File my state taxes free Depreciation table. File my state taxes free   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. File my state taxes free Table 2. File my state taxes free MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. File my state taxes free 461% 2 2. File my state taxes free 247% 3 2. File my state taxes free 033% 4 1. File my state taxes free 819% 5 1. File my state taxes free 605% 6 1. File my state taxes free 391% 7 1. File my state taxes free 177% 8 0. File my state taxes free 963% 9 0. File my state taxes free 749% 10 0. File my state taxes free 535% 11 0. File my state taxes free 321% 12 0. File my state taxes free 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. File my state taxes free See Publication 946 for the percentages for the remaining tax years of the recovery period. File my state taxes free Example. File my state taxes free In May, George Miller began to use one room in his home exclusively and regularly to meet clients. File my state taxes free This room is 8% of the square footage of his home. File my state taxes free He bought the home in 2003 for $125,000. File my state taxes free He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. File my state taxes free In May, the house had a fair market value of $165,000. File my state taxes free He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. File my state taxes free The result is $9,200, his depreciable basis for the business part of the house. File my state taxes free George files his return based on the calendar year. File my state taxes free May is the 5th month of his tax year. File my state taxes free He multiplies his depreciable basis of $9,200 by 1. File my state taxes free 605% (. File my state taxes free 01605), the percentage from the table for the 5th month. File my state taxes free His depreciation deduction is $147. File my state taxes free 66. File my state taxes free Depreciating permanent improvements. File my state taxes free   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. File my state taxes free Depreciate these costs as part of the cost of your home as explained earlier. File my state taxes free The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. File my state taxes free Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. File my state taxes free For improvements made this year, the recovery period is 39 years. File my state taxes free For the percentage to use for the first year, see Table 2, earlier. File my state taxes free For more information on recovery periods, see Publication 946. File my state taxes free Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. File my state taxes free Use the resulting percentage to figure the business part of the expenses for operating your entire home. File my state taxes free You can use any reasonable method to determine the business percentage. File my state taxes free The following are two commonly used methods for figuring the percentage. File my state taxes free Divide the area (length multiplied by the width) used for business by the total area of your home. File my state taxes free If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. File my state taxes free Example 1. File my state taxes free Your office is 240 square feet (12 feet × 20 feet). File my state taxes free Your home is 1,200 square feet. File my state taxes free Your office is 20% (240 ÷ 1,200) of the total area of your home. File my state taxes free Your business percentage is 20%. File my state taxes free Example 2. File my state taxes free You use one room in your home for business. File my state taxes free Your home has 10 rooms, all about equal size. File my state taxes free Your office is 10% (1 ÷ 10) of the total area of your home. File my state taxes free Your business percentage is 10%. File my state taxes free Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. File my state taxes free Deduction Limit If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. File my state taxes free If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. File my state taxes free Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. File my state taxes free The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). File my state taxes free These expenses are discussed in detail under Actual Expenses , earlier. File my state taxes free The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. File my state taxes free If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. File my state taxes free Carryover of unallowed expenses. File my state taxes free   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. File my state taxes free They are subject to the deduction limit for that year, whether or not you live in the same home during that year. File my state taxes free Figuring the deduction limit and carryover. File my state taxes free   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. File my state taxes free If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. File my state taxes free Example. File my state taxes free You meet the requirements for deducting expenses for the business use of your home. File my state taxes free You use 20% of your home for business. File my state taxes free In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. File my state taxes free    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). File my state taxes free You also can deduct all of your business expenses not related to the use of your home ($2,000). File my state taxes free Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. File my state taxes free Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. File my state taxes free You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. File my state taxes free More than one place of business. File my state taxes free   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. File my state taxes free In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. File my state taxes free If your home office qualifies as your principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. File my state taxes free For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. File my state taxes free Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. File my state taxes free In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. File my state taxes free The area you use to figure your deduction is limited to 300 square feet. File my state taxes free See Simplified Amount , later, for information about figuring the amount of the deduction. File my state taxes free For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. File my state taxes free R. File my state taxes free B. File my state taxes free 478, available at www. File my state taxes free irs. File my state taxes free gov/irb/2013-06_IRB/ar09. File my state taxes free html. File my state taxes free Actual expenses and depreciation of your home. File my state taxes free   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. File my state taxes free You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. File my state taxes free The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. File my state taxes free If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. File my state taxes free More information. File my state taxes free   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. File my state taxes free R. File my state taxes free B. File my state taxes free 478, available at www. File my state taxes free irs. File my state taxes free gov/irb/2013-06_IRB/ar09. File my state taxes free html. File my state taxes free See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). File my state taxes free Expenses deductible without regard to business use. File my state taxes free   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. File my state taxes free These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. File my state taxes free See Where To Deduct , later. File my state taxes free If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). File my state taxes free No deduction of carryover of actual expenses. File my state taxes free   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. File my state taxes free Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. File my state taxes free Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. File my state taxes free Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. File my state taxes free An election for a taxable year, once made, is irrevocable. File my state taxes free A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. File my state taxes free Shared use. File my state taxes free   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. File my state taxes free More than one qualified business use. File my state taxes free   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. File my state taxes free More than one home. File my state taxes free   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. File my state taxes free You must figure the deduction for any other home using actual expenses. File my state taxes free Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. File my state taxes free To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. File my state taxes free The allowable area of your home used in conducting the business. File my state taxes free If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. File my state taxes free The gross income from the business use of your home. File my state taxes free The amount of the business expenses that are not related to the use of your home. File my state taxes free If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. File my state taxes free To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. File my state taxes free Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). File my state taxes free See Allowable area and Space used regularly for daycare , later. File my state taxes free Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. File my state taxes free If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. File my state taxes free See Gross income limitation , later. File my state taxes free Take the smaller of the amounts from (1) and (2). File my state taxes free This is the amount you can deduct for this qualified business use of your home using the simplified method. File my state taxes free If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. File my state taxes free If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. File my state taxes free Allowable area. File my state taxes free   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. File my state taxes free Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. File my state taxes free You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. File my state taxes free Area used by a qualified joint venture. File my state taxes free   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. File my state taxes free Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. File my state taxes free Then, each spouse will figure the allowable area separately. File my state taxes free For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. File my state taxes free Shared use. File my state taxes free   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. File my state taxes free You must allocate the shared space between you and the other person in a reasonable manner. File my state taxes free Example. File my state taxes free Kristin and Lindsey are roommates. File my state taxes free Kristin uses 300 square feet of their home for a qualified business use. File my state taxes free Lindsey uses 200 square feet of their home for a separate qualified business use. File my state taxes free The qualified business uses share 100 square feet. File my state taxes free In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. File my state taxes free If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. File my state taxes free More than one qualified business use. File my state taxes free   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. File my state taxes free Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. File my state taxes free However, do not allocate more square feet to a qualified business use than you actually use for that business. File my state taxes free Rental use. File my state taxes free   The simplified method does not apply to rental use. File my state taxes free A rental use that qualifies for the deduction must be figured using actual expenses. File my state taxes free If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. File my state taxes free You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. File my state taxes free Part-year use or area changes. File my state taxes free   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. File my state taxes free You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. File my state taxes free When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. File my state taxes free Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. File my state taxes free Example 1. File my state taxes free Andy files his federal income tax return on a calendar year basis. File my state taxes free On July 20, he began using 420 square feet of his home for a qualified business use. File my state taxes free He continued to use the 420 square feet until the end of the year. File my state taxes free His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). File my state taxes free Example 2. File my state taxes free Amy files her federal income tax return on a calendar year basis. File my state taxes free On April 20, she began using 100 square feet of her home for a qualified business use. File my state taxes free On August 5, she expanded the area of her qualified use to 330 square feet. File my state taxes free Amy continued to use the 330 square feet until the end of the year. File my state taxes free Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). File my state taxes free Gross income limitation. File my state taxes free   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. File my state taxes free If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. File my state taxes free Business expenses not related to use of the home. File my state taxes free   These expenses relate to the business activity in the home, but not to the use of the home itself. File my state taxes free You can still deduct business expenses that are unrelated to the use of the home. File my state taxes free See Where To Deduct , later. File my state taxes free Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. File my state taxes free Space used regularly for daycare. File my state taxes free   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. File my state taxes free The reduced rate will equal the prescribed rate times a fraction. File my state taxes free The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. File my state taxes free You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. File my state taxes free    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. File my state taxes free Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. File my state taxes free To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. File my state taxes free You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. File my state taxes free You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. File my state taxes free You do not meet this requirement if your application was rejected or your license or other authorization was revoked. File my state taxes free Figuring the deduction. File my state taxes free   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. File my state taxes free    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. File my state taxes free If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. File my state taxes free   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. File my state taxes free A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. File my state taxes free You do not have to keep records to show the specific hours the area was used for business. File my state taxes free You can use the area occasionally for personal reasons. File my state taxes free However, a room you use only occasionally for business does not qualify for the deduction. File my state taxes free To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. File my state taxes free You can compare the hours of business use in a week with the number of hours in a week (168). File my state taxes free Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). File my state taxes free If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. File my state taxes free Example 1. File my state taxes free Mary Lake used her basement to operate a daycare business for children. File my state taxes free She figures the business percentage of the basement as follows. File my state taxes free Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. File my state taxes free During the other 12 hours a day, the family could use the basement. File my state taxes free She figures the percentage of time the basement was used for daycare as follows. File my state taxes free Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. File my state taxes free 25%           Mary can deduct 34. File my state taxes free 25% of any direct expenses for the basement. File my state taxes free However, because her indirect expenses are for the entire house, she can deduct only 17. File my state taxes free 13% of the indirect expenses. File my state taxes free She figures the percentage for her indirect expenses as follows. File my state taxes free Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. File my state taxes free 25% Percentage for indirect expenses 17. File my state taxes free 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. File my state taxes free In Part II, Mary figures her deductible expenses. File my state taxes free She uses the following information to complete Part II. File my state taxes free Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. File my state taxes free (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). File my state taxes free ) The expenses she paid for rent and utilities relate to her entire home. File my state taxes free Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). File my state taxes free She shows the total of these expenses on line 22, column (b). File my state taxes free For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. File my state taxes free Mary paid $500 to have the basement painted. File my state taxes free The painting is a direct expense. File my state taxes free However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. File my state taxes free 25% – line 6). File my state taxes free She enters $171 (34. File my state taxes free 25% × $500) on line 19, column (a). File my state taxes free She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. File my state taxes free This is less than her deduction limit (line 15), so she can deduct the entire amount. File my state taxes free She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. File my state taxes free She then carries the $1,756 to line 30 of her Schedule C (Form 1040). File my state taxes free Example 2. File my state taxes free Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. File my state taxes free Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. File my state taxes free Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. File my state taxes free The basement and room are 60% of the total area of her home. File my state taxes free In figuring her expenses, 34. File my state taxes free 25% of any direct expenses for the basement and room are deductible. File my state taxes free In addition, 20. File my state taxes free 55% (34. File my state taxes free 25% × 60%) of her indirect expenses are deductible. File my state taxes free Example 3. File my state taxes free Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. File my state taxes free She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. File my state taxes free During the other 12 hours a day, the family could still use the basement. File my state taxes free She figures the percentage of time the basement was used for business as follows. File my state taxes free Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. File my state taxes free 71%           Mary can deduct 35. File my state taxes free 71% of any direct expenses for the basement. File my state taxes free However, because her indirect expenses are for the entire house, she can deduct only 17. File my state taxes free 86% of the indirect expenses. File my state taxes free She figures the percentage for her indirect expenses as follows. File my state taxes free Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. File my state taxes free 71% Percentage for indirect expenses 17. File my state taxes free 86% Meals. File my state taxes free   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. File my state taxes free Claim it as a separate deduction on your Schedule C (Form 1040). File my state taxes free You can never deduct the cost of food consumed by you or your family. File my state taxes free You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. File my state taxes free However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. File my state taxes free For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. File my state taxes free   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. File my state taxes free   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. File my state taxes free If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). File my state taxes free If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). File my state taxes free Do not include payments or expenses for your own children if they are eligible for the program. File my state taxes free Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. File my state taxes free Standard meal and snack rates. File my state taxes free   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. File my state taxes free For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. File my state taxes free Family daycare is childcare provided to eligible children in the home of the family daycare provider. File my state taxes free The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. File my state taxes free Eligible children are minor children receiving family daycare in the home of the family daycare provider. File my state taxes free Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. File my state taxes free Eligible children do not include children who receive daycare services for personal reasons of the provider. File my state taxes free For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. File my state taxes free   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. File my state taxes free You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. File my state taxes free If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. File my state taxes free   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. File my state taxes free If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. File my state taxes free However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. File my state taxes free   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. File my state taxes free The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. File my state taxes free This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. File my state taxes free   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. File my state taxes free These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). File my state taxes free     Table 3. File my state taxes free Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an