Based upon the information you provided, we will compute your estimated home
office deduction using a business use percentage of
%. If you supplied information
regarding both the number of rooms in, and the area of your home, this
represents whichever yields the larger deduction. Otherwise, it reflects
whichever response you provided to Part 1, Question 3.
Your net business income from your home-based business is $.
This is the maximum amount that you can deduct in the current year. If the
deduction exceeds this amount the deduction is limited to that amount, and the
remainder may be carried over and used in subsequent years when you have
additional net income from your home-based business.
Now, please provide the following information regarding the expenses you
incurred relating to your home office. If an expense pertains only to the
office portion, enter it in the "Office" column. It it pertains to the entire
house, including the office, enter it in the "Home" column. Please note that
you may have to enter amounts in both the "Office" and the "Home" columns with
respect to certain expense items. For example, if you painted your entire home,
there would be decorating entries for both home and office.