For use in preparing

Future Developments

Publication 587

Business Use

of Your Home

(Including Use by

Daycare Providers)

For use in preparing

2025 Returns

For the latest information about developments related to

Pub. 587, such as legislation enacted after it was

published, go to IRS.gov/Pub587.

What’s New

State and local tax deduction limit increased. The

overall limit on the deduction for state and local income,

sales, and property taxes has increased to $40,000

($20,000 if married filing separately). The overall limit is

reduced if your modified adjusted gross income is more

than $500,000 ($250,000 if married filing separately) but

will not be reduced below $10,000 ($5,000 if married filing

separately).

Standard meal and snack rates applicable to United

States territories. The standard meal and snack rate table provides the deductible costs for meals provided by

family daycare providers. These amounts apply to U.S.

territories (Guam, Puerto Rico, and the U.S. Virgin Islands) as well as to U.S. states. See Table 3, Standard

Meal and Snack Rates, below.

Reminders

Simplified method for business use of home deduction. The IRS provides a simplified method to figure your

expenses for business use of your home. For more information, see Using the Simplified Method under Figuring

the Deduction, later.

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Missing & Exploited Children® (NCMEC). Photographs of

missing children selected by the Center may appear in

this publication on pages that would otherwise be blank.

You can help bring these children home by looking at the

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Introduction

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The purpose of this publication is to provide information

on figuring and claiming the deduction for business use of

your home. The term “home” includes a house, apartment,

condominium, mobile home, boat, or similar property that

provides basic living accommodations. It also includes

structures on the property, such as an unattached garage,

studio, barn, or greenhouse. However, it does not include

any part of your property used exclusively as a hotel, motel, inn, or similar establishment.

Qualifying for a Deduction explains the requirements for

qualifying to deduct expenses for the business use of your

Publication 587 (2025) Catalog Number 15154T

Department of the Treasury Internal Revenue Service www.irs.gov

home (including special rules for storing inventory or product samples). For special rules that apply to daycare providers, see Daycare Facility.

After you determine that you qualify for the deduction,

Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified

method. The simplified method is an alternative to calculating and substantiating actual expenses.

Where To Deduct explains where a self-employed person or partner will report the deduction.

This publication also includes information on the following.

• Selling a home that was used partly for business.

• Deducting expenses for furniture and equipment used

in your business.

• Records you should keep.

Finally, this publication contains worksheets to help you

figure the amount of your deduction if you use your home

in your farming business and you are filing Schedule F

(Form 1040) or you are a partner and the use of your

home resulted in unreimbursed ordinary and necessary

expenses that are trade or business expenses under section 162 and that you are required to pay under the partnership agreement. If you used your home for business

and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in

your Instructions for Schedule C.

The rules in this publication apply to individuals.

If you need information on deductions for renting out

your property, see Pub. 527, Residential Rental Property

(Including Rental of Vacation Homes).

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

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue

Service, Tax Forms and Publications, 1111 Constitution

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will

consider your comments and suggestions as we revise

our tax forms, instructions, and publications. Don’t send

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have

a tax question not answered by this publication or the How

To Get Tax Help section at the end of this publication, go

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search

feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

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Useful Items

You may want to see:

Publication

523 Selling Your Home

523

551 Basis of Assets

551

583 Starting a Business and Keeping Records

583

946 How To Depreciate Property

946

Form (and Instructions)

Schedule C (Form 1040) Profit or Loss From

Business

Schedule C (Form 1040)

4562 Depreciation and Amortization

4562

8829 Expenses for Business Use of Your Home

8829

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. However, you may be able to deduct

expenses related to the business use of part of your home

if you meet specific requirements. Even then, the deductible amount of these types of expenses may be limited.

Use this section and Figure A to decide if you can deduct

expenses for the business use of your home.

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 (see Principal Place of Business, 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 that 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 Pub. 527); or

• As a daycare facility (see Daycare Facility, later).

Exclusive Use

To qualify under the exclusive use test, you must use a

specific area of your home only for your trade or business.

The area used for business can be a room or other separately identifiable space. The space does not need to be

marked off by a permanent partition.

Publication 587 (2025)

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.

Example. You are an attorney and use a den in your

home to write legal briefs and prepare clients’ tax returns.

Your family also uses the den for recreation. The den is

not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den.

Exceptions to Exclusive Use

You do not have to meet the exclusive use test if either of

the following applies.

• You use the part of your home in question for the stor-

age of inventory or product samples (discussed next).

• You use the part of your home in question as a day-

care facility (discussed later under Daycare Facility).

Note: With the exception of these two uses, any portion of the home used for business purposes must meet

the exclusive use test.

Storage of inventory or product samples. 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. However, you must meet all the following tests.

• You sell products at wholesale or retail as your trade or

business.

• You keep the inventory or product samples in your

home for use in your trade or business.

• Your home is the only fixed location of your trade or

business.

• You use the storage space on a regular basis.

• The space you use is a separately identifiable space

suitable for storage.

Example. Your home is the only fixed location of your

business of selling mechanics’ tools at retail. You regularly

use half of your basement for storage of inventory and

product samples. You sometimes use the area for personal purposes. The expenses for the storage space are

deductible even though you do not use this part of your

basement exclusively for business.

Regular Use

To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. Incidental or occasional business use is not regular use. You

must consider all facts and circumstances in determining

whether your use is on a regular basis.

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. If you use your home for a profit-seeking activity that

Publication 587 (2025)

is not a trade or business, you cannot take a deduction for

its business use.

Example. 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. You do not make investments as a

broker or dealer. So, your activities are not part of a trade

or business and you cannot take a deduction for the business use of your home.

Principal Place of Business

You can have more than one business location, including

your home, for a single trade or business. 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. 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.

Your home office will qualify as your principal place of

business if you meet the following requirements.

• You use it exclusively and regularly for administrative

or management activities of your trade or business.

• You have no other fixed location where you conduct

substantial administrative or management activities of

your trade or business.

If, after considering your business locations, your home

cannot be identified as your principal place of business,

you cannot deduct home office expenses. 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.

Administrative or management activities. There are

many activities that are administrative or managerial in nature. The following are a few examples.

• Billing customers, clients, or patients.

• Keeping books and records.

• Ordering supplies.

• Setting up appointments.

• Forwarding orders or writing reports.

Administrative or management activities performed

at other locations. The following activities performed by

you or others will not disqualify your home office from being your principal place of business.

• You have others conduct your administrative or man-

agement activities at locations other than your home.

(For example, another company does your billing from

its place of business.)

3

• You conduct administrative or management activities

side your home. (For example, you meet with or provide services to customers, clients, or patients at a

fixed location of the business outside your home.)

at places that are not fixed locations of your business,

such as in a car or a hotel room.

• You occasionally conduct minimal administrative or

• You have suitable space to conduct administrative or

management activities at a fixed location outside your

home.

management activities outside your home, but choose

to use your home office for those activities instead.

• You conduct substantial nonadministrative or nonmanagement business activities at a fixed location out-

Figure A. Can You Deduct Business Use of the Home Expenses? Do not use this chart if you use your home for the storage of

inventory or product samples, or to operate a daycare facility. See Exceptions to Exclusive Use, earlier, and Daycare Facility, later.

Start Here:

No

Is part of your home

used in connection with

a trade or business?

Yes

Yes

Are you using the part of

your home as an employee?

No

No

Is the use regular

and exclusive?

Yes

Is it your principal place

of business?

Yes

No

Do you meet patients,

clients, or customers in

your home?

Yes

No

No deduction

No

Is it a separate

structure?

Example 1. Sid is a self-employed plumber. Most of

Sid’s time is spent at customers’ homes and offices installing and repairing plumbing. Sid has a small office at

home that is used exclusively and regularly for the administrative or management activities of the plumbing business, such as phoning customers, ordering supplies, and

keeping the books.

Sid writes up estimates and records of work completed

at the customers’ premises. Sid does not conduct any

substantial administrative or management activities at any

fixed location other than their home office. Sid does not do

4

Yes

Deduction allowed

direct billing. Sid uses a local bookkeeping service to bill

customers.

Sid’s home office qualifies as a principal place of business for deducting expenses. Sid uses the home office for

the administrative or managerial activities of the plumbing

business and has no other fixed location where these administrative or managerial activities are conducted. Sid’s

choice to have billing done by another company does not

disqualify the home office from being their principal place

of business. Sid meets all the qualifications, including

principal place of business, so the expenses (subject to

certain limitations, explained later) can be deducted for

the business use of the home.

Publication 587 (2025)

Example 2. Alex is a self-employed sales representative for several different product lines. Alex has an in-home

office that is used exclusively and regularly to set up appointments and write up orders and other reports for the

products Alex sells. Alex occasionally writes up orders

and sets up appointments from a hotel room while away

on business overnight.

Alex’s business is selling products to customers at various locations throughout an assigned territory. To make

these sales, Alex regularly visits customers to explain the

available products and take orders.

Alex’s home office qualifies as a principal place of business for deducting expenses for its use. Alex conducts administrative or management activities there and has no

other fixed location where substantial administrative or

management activities are conducted. The fact that Alex

conducts some administrative or management activities in

a hotel room (not a fixed location) does not disqualify the

home office from being a principal place of business. Alex

meets all the qualifications, including principal place of

business, so the expenses (subject to certain limitations,

explained later) can be deducted for the business use of

the home.

More Than One Trade or Business

The same home office can be the principal place of business for two or more separate business activities.

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. You must use the home office exclusively and

regularly for one or more of the following purposes.

• As the principal place of business for one or more of

your trades or businesses.

• 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.

• If your home office is a separate structure, in connection with one or more of your trades or businesses.

You can use your home office for more than one trade

or business activity, but you cannot use it for any activities

that are not related to a trade or business.

Place To Meet Patients, Clients, or

Customers

Example 3. Taylor is a self-employed anesthesiologist. Taylor spends the majority of the time administering

anesthesia and postoperative care in three local hospitals.

One of the hospitals provides a small shared office where

Taylor could conduct administrative or management activities.

Taylor very rarely uses the office the hospital provides

but instead uses a room at home that has been converted

to an office. Taylor uses this room exclusively and regularly to conduct all the following activities.

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.

• Contacting patients, surgeons, and hospitals regard-

• Their use of your home is substantial and integral to

ing scheduling.

• Preparing for treatments and presentations.

• Maintaining billing records and patient logs.

• Satisfying continuing medical education requirements.

• Reading medical journals and books.

Taylor’s home office qualifies as a principal place of

business for deducting expenses for its use. Taylor conducts anesthesiologist-related administrative or management activities there and at no other fixed location where

substantial administrative or management activities for

this business are conducted. Taylor’s choice to use their

home office instead of the one provided by their hospital

does not disqualify the home office from being their principal place of business. Taylor’s performance of substantial

nonadministrative or nonmanagement activities at fixed locations outside their home also does not disqualify the

home office from being their principal place of business.

Taylor meets all the qualifications, including principal

place of business, so the expenses (subject to certain limitations, explained later) can be deducted for the business

use of the home.

Publication 587 (2025)

• You physically meet with patients, clients, or customers on your premises.

the conduct of your business.

Doctors, dentists, attorneys, and other professionals

who maintain offices in their homes will generally meet

this requirement.

Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the

business use of your home.

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.

Example. Sam, a self-employed attorney, works 3

days a week in a rented office, then works 2 days a week

at home, in a home office used only for business. Sam

regularly meets clients there. The home office qualifies for

a business deduction because Sam meets clients there in

the normal course of their business.

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. The

structure does not have to be your principal place of

5

business or a place where you meet patients, clients, or

customers.

Example. Bobbie operates a floral shop in town. Bobbie grows the plants for the shop in a greenhouse located

at home. Bobbie uses the greenhouse exclusively and

regularly for the floral shop business, so Bobbie can deduct the expenses for its use (subject to certain limitations, described later).

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. 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.

Electing to use the simplified method. The simplified

method is an alternative to the calculation, allocation, and

substantiation of actual expenses. You choose whether or

not to figure your deduction using the simplified method

each tax year. See Using the Simplified Method, later.

Actual Expenses

You must divide the expenses of operating your home between personal and business use. The part of a home operating expense you can use to figure your deduction depends on both of the following.

• Whether the expense is direct, indirect, or unrelated.

• The percentage of your home used for business.

Table 1 describes the types of expenses you may have

and the extent to which they are deductible.

Table 1. Types of Expenses

Expense

Description

Deductibility

Direct

Expenses only for

the business part

of your home.

Deductible in full.*

Examples:

Painting or repairs

only in the area

used for business.

Exception:

May be only partially

deductible in a daycare

facility. See Daycare

Facility, later.

Expenses for

keeping up

and running your

entire home.

Deductible based on the

percentage of your home

used for business.*

Indirect

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. You will also need to figure

the percentage of your home used for business and the

limit on the deduction.

If you are 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. 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.

Part-year use. 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. 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.

Expenses related to tax-exempt income. Generally,

you cannot deduct expenses that are related to tax-exempt allowances. 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. No deduction is allowed for other expenses related to the tax-exempt allowance.

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.

6

Examples:

Insurance,

utilities, and

general repairs.

Unrelated

Expenses only for

the parts of your

home not used

for business.

Not deductible.

Examples:

Lawn care or painting

a room not used

for business.

*Subject to the deduction limit, discussed later.

Tip: Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses.

Certain expenses are deductible to the extent they

would have been deductible as an itemized deduction on

your Schedule A or, if claiming the standard deduction,

would have increased your standard deduction had you

not used your home for business. If the expense is indirect, use the business percentage of these expenses to

figure how much to include in your total business-use-of-the-home deduction. If you are itemizing your

deductions on Schedule A (Form 1040), these expenses

include the following.

• Real estate taxes.

• Home mortgage interest.

• Casualty losses attributable to a federally declared

disaster.

Publication 587 (2025)

If you are claiming the standard deduction, these expenses only include net qualified disaster losses that increase

your standard deduction.

sometimes treated as a permanent improvement and are

not deductible. See Permanent improvements, later, under

Depreciating Your Home.

See the Instructions for the Worksheet To Figure the

Deduction for Business Use of Your Home, later in this

publication, or the Instructions for Form 8829 for more information about figuring and deducting the business part

of these otherwise allowable expenses. For more information about deducting real estate taxes, see Pub. 530. For

more information about deducting home mortgage interest, see Pub. 936. For more information about deducting

casualty losses, see Pub. 547.

Security system. 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. You can also take a

depreciation deduction for the part of the cost of the security system relating to the business use of your home.

Other expenses are deductible only if you use your

home for business. If the expense is indirect, use the business percentage of these expenses to figure how much to

include in your total business-use-of-the-home deduction.

These expenses generally include (but are not limited to)

the following.

• Casualty losses not attributable to a federally declared

disaster.

• Depreciation (discussed under Depreciating Your

Home, later).

• Insurance.

• Rent paid for the use of property you do not own but

use in your trade or business.

• Repairs.

• Security system.

• Utilities and services. (But see Telephone, later, for different rules that apply to telephone expenses.)

Insurance. You can deduct the cost of insurance that

covers the business part of your home. 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. You can deduct the

business percentage of the part that applies to the following year in that year.

Rent. 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. To figure your deduction, multiply

your rent payments by the percentage of your home used

for business.

If you own your home, you cannot deduct the fair rental

value of your home. However, see Depreciating Your

Home, later.

Repairs. The cost of repairs that relate to your business,

including labor (other than your own labor), is a deductible

expense. For example, a furnace repair benefits the entire

home. If you use 10% of your home for business, you can

deduct 10% of the cost of the furnace repair.

Repairs keep your home in good working order over its

useful life. Examples of common repairs are patching

walls and floors, painting, wallpapering, repairing roofs

and gutters, and mending leaks. However, repairs are

Publication 587 (2025)

Utilities and services. Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning

services, are primarily personal expenses. However, if you

use part of your home for business, you can deduct the

business part of these expenses. Generally, the business

percentage for utilities is the same as the percentage of

your home used for business.

Telephone. The basic local telephone service charge,

including taxes, for the first telephone landline into your

home is a nondeductible personal expense. 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. Do not include these expenses as a cost of using

your home for business. Deduct these charges separately

on the appropriate form or schedule. 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).

Depreciating Your Home

If you own your home and qualify to deduct expenses for

its business use, you can claim a deduction for depreciation. Depreciation is an allowance for the wear and tear on

the part of your home used for business. You cannot depreciate the cost or value of the land. You recover its cost

when you sell or otherwise dispose of the property.

Before you figure your depreciation deduction, you

need to know the following information.

• The month and year you started using your home for

business.

• The adjusted basis and fair market value of your home

(excluding land) at the time you began using it for

business.

• The cost of any improvements before and after you

began using the property for business.

• The percentage of your home used for business. See

Business Percentage, later.

Adjusted basis defined. 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. For a discussion of adjusted basis, see Pub. 551.

Permanent improvements. A permanent improvement increases the value of property, adds to its life, or

7

gives it a new or different use. Examples of improvements

are replacing electric wiring or plumbing, adding a new

roof or addition, paneling, or remodeling.

You must carefully distinguish between repairs and improvements. See Repairs, earlier, under Actual Expenses.

You must also keep accurate records of these expenses.

These records will help you decide whether an expense is

a deductible or a capital (added to the basis) expense.

However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an

improvement.

nonresidential real property under MACRS. Under

MACRS, nonresidential real property is depreciated using

the straight line method over 39 years. For more information on MACRS and other methods of depreciation, see

Pub. 946.

To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). The depreciable basis is figured

by multiplying the percentage of your home used for business by the smaller of the following.

Example. You buy an older home and fix up two rooms

as a beauty salon. 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.

Normally, the patching, painting, and floor work are repairs

and the other expenses are permanent improvements.

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. You

cannot deduct any portion of it as a repair expense.

the date you began using your home for business.

Adjusting for depreciation deducted in earlier

years. 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. 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. If you did not deduct any depreciation, decrease

the basis by the amount you could have deducted.

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.

If you deducted the incorrect amount of depreciation,

see Pub. 946.

Fair market value defined. 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. 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.

Figuring the depreciation deduction for the current

year. If you began using your home for business before

2025, continue to use the same depreciation method you

used in past tax years. However, if you figured your deduction for business use of the home using the simplified

method in a prior year, you will need to use the optional

depreciation table for modified accelerated cost recovery

system (MACRS) property. See Pub. 946 for the optional

depreciation tables. For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06

I.R.B.

478,

available

at

IRS.gov/irb/

2013-06_IRB#RP-2013-13.

If you began using your home for business for the first

time in 2025, depreciate the business part as

8

• The adjusted basis of your home (excluding land) on

• The fair market value of your home (excluding land) on

the date you began using your home for business.

Depreciation table. If 2025 was the first year you

used your home for business, you can figure your 2025

depreciation for the business part of your home by using

the appropriate percentage from the following table.

Table 2. MACRS Percentage Table for

39-Year Nonresidential Real

Property

Month First Used for Business

Percentage To Use

1

2.461%

2

2.247%

3

2.033%

4

1.819%

5

1.605%

6

1.391%

7

1.177%

8

0.963%

9

0.749%

10

0.535%

11

0.321%

12

0.107%

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. See Pub. 946 for

the percentages for the remaining tax years of the recovery period.

Example. In May, Frankie began to use one room at

home exclusively and regularly to meet clients. This room

is 8% of the square footage of the home. Frankie bought

the home in 2014 for $125,000. Frankie determined from

the property tax records that the adjusted basis in the

house (exclusive of land) is $115,000. In May, the house

had a fair market value of $165,000. Frankie multiplies the

adjusted basis of $115,000 (which is less than the fair

market value) by 8%. The result is $9,200, the depreciable

basis for the business part of the house.

Frankie files a tax return based on the calendar year.

May is the fifth month of this tax year. Frankie multiplies

the depreciable basis of $9,200 by 1.605% (0.01605), the

percentage from the table for the fifth month. Frankie’s depreciation deduction is $147.66.

Publication 587 (2025)

Depreciating permanent improvements. Add the costs

of permanent improvements made before you began using your home for business to the basis of your property.

Depreciate these costs as part of the cost of your home,

as explained earlier. 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. 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. For improvements made this year, the recovery period is 39 years. For the percentage to use for

the first year, see Table 2. For more information on recovery periods, see Pub. 946.

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.

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.

Business Percentage

1. 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 losses attributable to a federally declared disaster if you

itemize deductions on Schedule A (Form 1040) or net

qualified disaster losses if you claim the standard deduction).

To find the business percentage, compare the size of the

part of your home that you use for business to your whole

house. Use the resulting percentage to figure the business

part of the expenses for operating your entire home.

2. 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.

You can use any reasonable method to determine the

business percentage. The following are two commonly

used methods for figuring the percentage.

1. Divide the area (length multiplied by the width) used

for business by the total area of your home.

2. 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.

Example 1.

• Your office is 240 square feet (12 feet × 20 feet).

• Your home is 1,200 square feet.

• Your office is 20% (240 ÷ 1,200) of the total area of

your home.

• Your business percentage is 20%.

Example 2.

• You use one room in your home for business.

• Your home has 10 rooms, all about equal size.

• Your office is 10% (1 ÷ 10) of the total area of your

home.

• Your business percentage is 10%.

Tip: 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.

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.

Publication 587 (2025)

If you are self-employed, do not include in (2) above your

deduction for one-half of your self-employment tax.

Carryover of unallowed expenses. If your business expenses related to the home are greater than the current

year’s limit, you can carry over the excess to the next year

in which you use actual expenses. They are subject to the

deduction limit for that year, whether or not you live in the

same home during that year.

Figuring the deduction limit and carryover. If you are

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. If you file

Schedule C (Form 1040), figure your deduction limit and

carryover on Form 8829.

Example. You meet the requirements for deducting expenses for the business use of your home. You use 20%

of your home for business. You are itemizing your deductions on Schedule A (Form 1040) and your home mortgage interest and total state and local taxes would not be

limited on your Schedule A if you had not used your home

for business. In 2025, your business expenses and the expenses for the business use of your home are deducted

from your gross income in the following order.

Gross income from business . . . . . . . . . . . . . . . . . . .

Minus:

Deductible mortgage interest

and real estate taxes (20%) . . . . . . . . . . . . . . . . .

Business expenses not related to the use of your home

(100%) (business phone, supplies, and depreciation on

equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deduction limit . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minus other expenses allocable to business use of home:

Maintenance, insurance, and utilities (20%) . . . . . . . .

Depreciation allowed (20%) . . . . . . . . . . . . . . . . .

Other expenses up to the deduction limit . . . . . . . . . . .

Depreciation carryover to 2026 ($1,600 − $200)

(subject to deduction limit in 2026) . . . . . . . . . . . . . . .

$6,000

3,000

2,000

$1,000

800

200

$1,000

$1,400

9

You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). You

can also deduct all of your business expenses not related

to the use of your home ($2,000). 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. Your deduction for

depreciation for the business use of your home is limited

to $200 ($1,000 minus $800) because of the deduction

limit. You can carry over the $1,400 balance and add it to

your depreciation for 2026, subject to your deduction limit

in 2026.

More than one place of business. 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. 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.

Tip: 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. For more information on transportation costs, see Pub. 463.

Using the Simplified Method

The simplified method is an alternative to the calculation,

allocation, and substantiation of actual expenses. 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. The area you use to figure your deduction is limited to 300 square feet. See Simplified Amount,

later, for information about figuring the amount of the deduction.

For more information about the simplified method, see

Revenue Procedure 2013-13, 2013-06 I.R.B. 478, available at IRS.gov/irb/2013-06_IRB#RP-2013-13.

Actual expenses and depreciation of your home. 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. 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. The depreciation deduction allowable for that

portion of the home is deemed to be zero for a year you

use the simplified method. 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.

More information. For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I.R.B. 478, available at

IRS.gov/irb/2013-06_IRB#RP-2013-13. See Pub. 946 for

the optional depreciation tables.

10

Tip: 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).

Expenses deductible without regard to business use.

When using the simplified method, treat as personal expenses your mortgage interest, real estate taxes, and

casualty losses. 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).

No deduction of carryover of actual expenses. 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. Instead, you

will continue to carry over the disallowed amount to the

next year that you use actual expenses to figure your deduction.

Electing the Simplified Method

You choose whether or not to figure your deduction using

the simplified method each tax year. 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. An election

for a tax year, once made, is irrevocable. A change from

using the simplified method in one year to actual expenses in a succeeding tax year, or vice versa, is not a

change in method of accounting and does not require the

consent of the Commissioner.

Shared use. If you share your home with someone else

who also uses the home in a business that qualifies for

this deduction, each of you makes your own election.

More than one qualified business use. 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.

More than one home. If you used more than one home

in your business during the year (for example, you moved

during the year), you can elect to use the simplified

method for only one of the homes. You must figure the deduction for any other home using actual expenses.

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. To figure your deduction for

the business use of a home using the simplified method,

Publication 587 (2025)

you will need to know the following information for each

qualified business use of the home.

• The allowable area of your home used in conducting

the business. 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.

• The gross income from the business use of your

home.

• The amount of the business expenses that are not related to the use of your home.

• 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 need to know the percentage of

time that part of your home is used for daycare.

To figure the amount you can deduct for qualified business use of your home using the simplified method, follow

these three steps.

1. 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). See Allowable area and Space used regularly

for daycare, later.

2. 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. 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. See Gross

income limitation, later.

3. Take the smaller of the amounts from (1) and (2). This

is the amount you can deduct for this qualified business use of your home using the simplified method.

If you are 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. 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.

Allowable area. 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.

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. 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.

Publication 587 (2025)

Area used by a qualified joint venture. 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. Split the actual area used in conducting business between you and your spouse in the

same manner you split your other tax attributes. Then

each spouse will figure the allowable area separately. For

more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C.

Shared use. 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.

You must allocate the shared space between you and the

other person in a reasonable manner.

Example. Lindsey and Tracy are roommates. Lindsey

uses 300 square feet of their home for a qualified business

use. Tracy uses 200 square feet of their home for a separate qualified business use. Lindsey and Tracy both share

100 square feet for their respective qualified businesses in

their mutual home. In addition to the portion that they do

not share, Lindsey and Tracy can both claim 50 of the 100

square feet or divide the 100 square feet between them in

any reasonable manner. If divided evenly, Lindsey could

claim 250 square feet using the simplified method and

Tracy could claim 150 square feet.

More than one qualified business use. 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. Allocate the actual square footage used

(up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. However, do

not allocate more square feet to a qualified business use

than you actually use for that business.

Rental use. The simplified method does not apply to

rental use. A rental use that qualifies for the deduction

must be figured using actual expenses. 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. 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.

Part-year use or area changes (for simplified

method only). If your qualified business use was for a

portion of the year (for example, a seasonal business, a

business that begins during the year, or you moved during

the year) or you changed the square footage of your qualified business use, your deduction is limited to the average

monthly allowable square footage. 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. When determining the average monthly allowable square footage, you cannot take

more than 300 square feet into account for any 1 month.

Additionally, if your qualified business use was less than

15 days in a month, you must use -0- for that month.

11

Example 1. Jay owns a home and files federal income

taxes on a calendar year basis. On July 20, Jay began using 420 square feet at the home for a qualified business

use. Jay continued to use 420 square feet of the home until the end of the year. The 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 year ((0 + 0 +

0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12).

Example 2. Jessie owns a home and files federal income taxes on a calendar year basis. On April 20, Jessie

began using 100 square feet of the home for a qualified

business use. On August 5, Jessie expanded the area of

qualified use to 330 square feet. Jessie continued to use

the 330 square feet until the end of the year. The 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 year ((0 + 0 + 0 + 0

+ 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12).

Example 3. Guadalupe owns a home and files federal

income taxes on a calendar year basis. From January 1

through July 16, Guadalupe used 300 square feet of the

home for a qualified business use. On July 17, Guadalupe

moved to a new home and immediately began using 200

square feet for the same qualified business use. While

preparing a 2025 tax return, Guadalupe decided to use

the simplified method to deduct the qualified business use

of the first home and files Form 8829 to deduct the qualified business use of the second home. The average

monthly allowable square footage is 175 square feet,

which is figured using 300 square feet for January through

July, divided by the number of months in the year ((300 +

300 + 300 + 300 + 300 + 300 + 300 + 0 + 0 + 0 + 0 + 0)/

12).

Caution: If you moved during the year, your average allowable square footage will generally be less than 300.

Gross income limitation. 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. 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.

Business expenses not related to use of the home.

These expenses relate to the business activity in the

home, but not to the use of the home itself. You can still

deduct business expenses that are unrelated to the use of

the home. See Where To Deduct, later. Examples of business expenses that are unrelated to the use of the home

are advertising, wages, supplies, dues, and depreciation

for equipment.

Space used regularly for daycare. If you do not use the

area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot)

12

before figuring your deduction. The reduced rate will equal

the prescribed rate times a fraction. 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. You can use the Daycare Facility

Worksheet (for simplified method), near the end of this

publication, to help you figure the reduced rate.

Tip: 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.

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. To qualify for this exception to the

exclusive use rule, you must meet both of the following requirements.

• You must be in the trade or business of providing day-

care for children, persons age 65 or older, or persons

who are physically or mentally unable to care for themselves.

• You must have applied for, been granted, or be ex-

empt from having a license, certification, registration,

or approval as a daycare center or as a family or group

daycare home under state law. You do not meet this

requirement if your application was rejected or your license or other authorization was revoked.

Figuring the deduction. 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.

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. If

you also use that part exclusively for daycare, deduct all

the allocable expenses, subject to the deduction limit, as

explained earlier.

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. 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. You do

not have to keep records to show the specific hours the

area was used for business. You can use the area occasionally for personal reasons. However, a room you use

only occasionally for business does not qualify for the deduction. No deduction is allowed for the cost of a basic local telephone line provided to the home.

Tip: 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. You can compare the hours of

Publication 587 (2025)

business use in a week with the number of hours in a

week (168). Or you can compare the hours of business

use for the year with the number of hours in the year

(8,760 in 2025). If you started or stopped using your home

for daycare in 2025, you must prorate the number of hours

based on the number of days the home was available for

daycare.

Example 1. Rene used the basement at home to operate a daycare business for children. Rene figures the

business percentage of the basement as follows.

Square footage of the basement

Square footage of the home

=

1,600

3,200

=

50%

Rene used the basement for daycare an average of 12

hours a day, 5 days a week, for 50 weeks a year. During

the other 12 hours a day, the family could use the basement. Rene figures the percentage of time the basement

was used for daycare as follows.

Number of hours used for daycare (12 x 5 x 50)

=

Total number of hours in the year (24 x 365)

3,000

= 34.25%

8,760

Rene can deduct 34.25% of any direct expenses for the

basement. However, because Rene’s indirect expenses

are for the entire house, Rene can deduct only 17.12% of

the indirect expenses. Rene figures the percentage for

their indirect expenses as follows.

Business percentage of the basement . . . . . . . . . . . . .

Multiplied by: Percentage of time used for daycare . . . . .

Percentage for indirect expenses . . . . . . . . . . . . . . . .

50%

× 34.25%

17.12%

Rene completes Form 8829, Part I, figuring the percentage of the home used for business, including the percentage of time the basement was used.

In Part II, Rene figures the deductible expenses. Rene

uses the following information to complete Part II.

Gross income from the daycare business . . . . . . . . . . .

Expenses not related to the business use of the home . . .

Tentative profit . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$50,000

$25,000

$25,000

Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Painting the basement . . . . . . . . . . . . . . . . . . . . . . .

$8,400

$850

$500

Rene enters a tentative profit, $25,000, on line 8. (This

figure is the same as the amount on line 29 of Schedule C

(Form 1040)).

The expenses paid for rent and utilities relate to the entire home. Therefore, Rene enters the amount paid for rent

on line 19, column (b), and the amount paid for utilities on

line 21, column (b). Rene shows the total of these expenses on line 23, column (b). For line 24, Rene multiplies the

amount on line 23, column (b), by the percentage on line 7

and enters the result, $1,584.

Rene paid $500 to have the basement painted. The

painting is a direct expense. However, because the basement was not used exclusively for daycare, Rene must

multiply $500 by the percentage of time the basement was

Publication 587 (2025)

used for daycare (34.25% – line 6). Rene then enters $171

(34.25% × $500) on line 20, column (a). Rene then adds

line 23, column (a), and line 24 and enters $1,755 ($171 +

$1,584) on line 26. This is less than Rene’s deduction limit

(line 15), so Rene can deduct the entire amount. Rene follows the instructions to complete the rest of Part II and enters $1,755 on lines 34 and 36. Then Rene carries the

$1,755 to line 30 of Schedule C (Form 1040).

Example 2. Assume the same facts as in Example 1

except that Rene also has another room that was available

each business day for children to take naps in. Although

Rene did not keep a record of the number of hours the

room was used for naps, it was used for part of each business day. 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. The basement

and room are 60% of the total area of the home. In figuring

Rene’s expenses, 34.25% of any direct expenses for the

basement and room are deductible. In addition, 20.55%

(34.25% × 60%) of the indirect expenses are deductible.

Example 3. Assume the same facts as in Example 1

except that Rene stopped using the home for a daycare

facility on June 24, 2025. Rene used the basement for

daycare an average of 12 hours a day, 5 days a week, but

for only 25 weeks of the year. During the other 12 hours a

day, Rene’s family could still use the basement. Rene figures the percentage of time the basement was used for

business as follows.

Number of hours used for daycare (12 x 5 x 25)

Total number of hours during period used (24 x =

175)

1,500

= 35.71%

4,200

Rene can deduct 35.71% of any direct expenses for the

basement. However, because the indirect expenses are

for the entire house, Rene can deduct only 17.86% of the

indirect expenses. Rene then figures the percentage for

the indirect expenses as follows.

Business percentage of the basement . . . . . . . . . . . . .

Multiplied by: Percentage of time used for daycare . . . . .

Percentage for indirect expenses . . . . . . . . . . . . . . . .

50%

× 35.71%

17.86%

Meals. If you provide food for your daycare recipients, do

not include the expense as a cost of using your home for

business. Claim it as a separate deduction on your Schedule C (Form 1040). You can never deduct the cost of food

consumed by you or your family. 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. For more information on meals

that meet these requirements, see Meals in chapter 2 of

Pub. 15-B.

If you deduct the actual cost of food for your daycare

business, keep a separate record (with receipts) of your

family’s food costs.

13

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. If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). If

your food expenses are greater than the reimbursements,

show the difference as an expense in Part V of Schedule C (Form 1040). Do not include payments or expenses

for your own children if they are eligible for the program.

Follow this procedure even if you receive a Form

1099-MISC, Miscellaneous Information, reporting a payment from the sponsor.

Standard meal and snack rates. 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. For these purposes:

• A family daycare provider is a person engaged in the

business of providing family daycare;

• Family daycare is childcare provided to eligible chil-

dren in the home of the family daycare provider. The

care must be nonmedical, not involve a transfer of legal custody, and generally last less than 24 hours

each day; and

• Eligible children are minor children receiving family

daycare in the home of the family daycare provider. 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. Eligible children do not

include children who receive daycare services for personal reasons of the provider. For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child.

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. 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. 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.

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. 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. 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.

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. The records kept should include the name of

14

each child, dates and hours of attendance in the daycare,

and the type and quantity of meals and snacks served.

This information can be recorded in a log similar to the

one shown in Exhibit A, near the end of this publication.

The standard meal and snack rates include beverages,

but do not include nonfood supplies used for food preparation, service, or storage, such as containers, paper

products, or utensils. These expenses can be claimed as

a separate deduction on your Schedule C (Form 1040).

Table 3. Standard Meal and Snack Rates1

Location of

Family

Daycare

Provider

Breakfast Lunch

Dinner

Snack

States and

territories

other than

Alaska,

Guam,

Hawaii, Puerto

Rico, and the

U.S. Virgin

Islands

$1.66

$3.15

$3.15

$0.93

Alaska

$2.66

$5.10

$5.10

$1.52

Guam,

Hawaii, Puerto

Rico, and the

U.S. Virgin

Islands

$2.14

$4.09

$4.09

$1.22

The applicable rates for 2025 are the Child and Adult Care

Food Program reimbursement rates in effect on December 31,

2024.

1

Sale or Exchange of

Your Home

If you sell or exchange your home, you may be able to exclude up to $250,000 ($500,000 for certain married persons filing a joint return) of the gain on the sale or exchange. In most cases, you must meet the ownership and

use tests. However, even if you meet the ownership and

use tests, your home sale is not eligible for the exclusion if

either of the following is true.

• You acquired the property through a like-kind ex-

change (1031 exchange) during the past 5 years.

• You are subject to the expatriate tax.

Publication 587 (2025)

Ownership and use tests. The ownership and use tests

generally require that during the 5-year period ending on

the date of the sale:

of your property, also divide your maximum exclusion between that part of the property and the separate part used

as your home.

• You owned the home for at least 2 years (ownership

Excluding gain on the business part of your property. You can generally exclude gain on the part of your

property used for business if you owned and lived in that

part as your main home for at least 2 years during the

5-year period ending on the date of the sale.

test), and

• You lived in the home as your main home for at least 2

years (use test). The 2 years of residence can fall anywhere within the 5-year period, and it does not need to

be a single block of time.

Gain on Sale

If you use property partly as a home and partly for business, the treatment of any gain on the sale varies depending on whether the part of the property used for business

is part of your home or separate from it.

Part of Home Used for Business

If the part of your property used for business is within your

home, such as a room used as a home office for a business or rooms used to provide daycare, you do not need

to allocate gain on the sale of the property between the

business part of the property and the part used as a

home. In addition, you do not need to report the sale of the

business part on Form 4797, Sales of Business Property.

This is true whether or not you were entitled to claim any

depreciation. However, you cannot exclude the part of any

gain equal to any depreciation allowed or allowable after

May 6, 1997. See Depreciation, later.

Separate Part of Property Used for Business

You may have used part of your property as a home and a

separate part of it, such as an outbuilding, for business.

Use test not met for business part. You cannot exclude gain on the separate part of your property used for

business unless you owned and lived in that part of your

property for at least 2 years during the 5-year period ending on the date of the sale. If you do not meet the use test

for the business part of the property, an allocation of the

gain on the sale is required. For this purpose, you must allocate the basis of the property and the amount realized

upon its sale between the business part and the part used

as a home. You must report the sale of the business part

on Form 4797.

Use test met for business part (business use in year

of sale). If you used a separate part of your property for

business in the year of sale, you should treat the sale of

the property as the sale of two properties, even if you met

the use test for the business part. You must report the sale

of the business part on Form 4797.

To determine the amount to report on Form 4797, you

must divide your selling price, selling expenses, and basis

between the part of the property used for business and

the separate part used as your home. In the same way, if

you qualify to exclude any of the gain on the business part

Publication 587 (2025)

Use test met for business part (no business use in

year of sale). If you have used a separate part of your

property for business (though not in the year of sale) but

meet the use test for both the business part and the part

you use as a home, you do not need to treat the transaction as the sale of two properties. Also, you do not need to

file Form 4797. You can generally exclude gain on the entire property.

Depreciation

If you were entitled to deduct depreciation on the part of

your home used for business, you cannot exclude the part

of the gain equal to any depreciation you deducted (or

could have deducted) for periods after May 6, 1997. This

means that when figuring the amount of gain you can exclude, you must reduce the total gain by any depreciation

allowed or allowable on the part of your home used for

business after May 6, 1997.

If you can show by adequate records or other evidence

that the depreciation you actually deducted (the allowed

depreciation) was less than the amount you were entitled

to deduct (the allowable depreciation), the amount you

cannot exclude (and must subtract from your total gain

when figuring your exclusion) is the amount you actually

deducted.

You do not have to reduce the gain by any depreciation

you deducted (or could have deducted) for a separate

structure for which you cannot exclude the allocable portion of the gain.

Basis Adjustment

If you used any part of your home for business, you must

adjust the basis of your home for any depreciation that

was allowable for its business use, even if you did not

claim it. If you deducted less depreciation than you could

have under the method you properly selected, you must

decrease the basis by the amount you could have deducted under that method. If you deducted more depreciation

than you should have under the method you properly selected, you must decrease the basis by the amount you

should have deducted, plus the part of the excess deducted that actually decreased your tax liability for any year.

For more information on reducing the basis of your property for depreciation, see Pub. 551.

15

Reporting the Sale

Do not report the 2025 sale of your main home on your tax

return unless:

• You received a Form 1099-S, Proceeds From Real Estate Transactions, for the sale or exchange;

• You have a gain and you do not qualify to exclude all

of it;

• You have a gain and choose not to exclude it; or

• You have a loss from the sale that is deductible.

Caution: A loss from the sale of your home, or the personal part of your home if it was also used for business or

to produce rental income, is not deductible.

If any of these conditions apply, report the gain or loss

as explained in the Instructions for Schedule D.

If you used the home for business, you may have to use

Form 4797 to report the sale of the business part. See the

Instructions for Form 4797.

More Information

This section covers only the basic rules for the sale or exchange of your home. For more information, see Pub. 523.

Business Furniture and

Equipment

This section discusses the depreciation and section 179

deductions you may be entitled to take for furniture and

equipment you use in your home for business. These deductions are available whether or not you qualify to deduct

expenses for the business use of your home.

This section explains the different rules for each of the

following.

• Listed property.

• Property bought for business use.

• Personal property converted to business use.

Listed Property

If you use certain types of property, called listed property,

in your home, special rules apply. Listed property includes

any property of a type generally used for entertainment,

recreation, and amusement (including photographic, phonographic, and video recording equipment).

More-than-50%-use test. If you bought listed property

and placed it in service during the year, you must use it

more than 50% for business to claim a section 179 deduction or an accelerated depreciation deduction.

If your business use of listed property is 50% or less,

you cannot take a section 179 deduction and you must depreciate the property using the Alternative Depreciation

16

System (ADS) (straight line method). For more information

on ADS, see Pub. 946.

Listed property meets the more-than-50%-use test for

any year if its qualified business use is more than 50% of

its total use. You must allocate the use of any item of listed

property used for more than one purpose during the year

among its various uses. You cannot use the percentage of

investment use as part of the percentage of qualified business use to meet the more-than-50%-use test. However,

you do use the combined total of business and investment

use to figure your depreciation deduction for the property.

Years following the year placed in service. If, in a year

after you place an item of listed property in service, you

fail to meet the more-than-50%-use test for that item of

property, you may be required to do the following.

1. Figure depreciation, beginning with the year you no

longer use the property more than 50% for business,

using the straight line method (ADS).

2. Figure any excess depreciation (include any section

179 deduction on the property in figuring excess depreciation) and add it to:

a. Your gross income, and

b. The adjusted basis of your property.

For more information, see Pub. 946.

Reporting and recordkeeping requirements. If you

use listed property in your business, you must file Form

4562 to claim a depreciation or section 179 deduction.

Begin with Part V, Section A, of that form.

You cannot take any depreciation or section 179

deduction for the use of listed property unless you

RECORDS can prove your business/investment use with adequate records or sufficient evidence to support your own

statements.

To meet the adequate records requirement, you must

maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary

evidence that is sufficient to establish business/investment use. For more information on what records to keep,

see Pub. 946.

Property Bought for Business Use

If you bought certain property during 2025 to use in your

business, you can do any one of the following (subject to

the limits discussed later).

• Elect a section 179 deduction for the full cost of the

property.

• Depreciate the cost of the property.

• Take part of the cost as a section 179 deduction and

depreciate the balance.

Publication 587 (2025)

Section 179 Deduction

You can claim the section 179 deduction for the cost of

depreciable tangible personal property bought for use in

your trade or business. You can choose how much (subject to the limit) of the cost you want to deduct under section 179 and how much you want to depreciate. You can

spread the section 179 deduction over several items of

property in any way you choose as long as the total does

not exceed the maximum allowable. You cannot take a

section 179 deduction for the basis of the business part of

your home.

You elect the section 179 deduction by completing Part

I of Form 4562.

More information. For more information on the section

179 deduction, qualifying property, the dollar limit, and the

business income limit, see Pub. 946 and the Instructions

for Form 4562.

Depreciation

Use Parts II and III of Form 4562 to claim your deduction

for depreciation on property placed in service during the

year. Do not include any costs deducted in Part I (section

179 deduction).

Most business property normally used in a home office

is either 5-year or 7-year property under MACRS.

• 5-year property includes computers and peripheral

equipment, typewriters, calculators, adding machines,

and copiers.

• 7-year property includes office furniture and fixtures

such as desks, files, and safes.

Under MACRS, you generally use the half-year convention, which allows you to deduct a half-year of depreciation in the first year you use the property in your business.

If you place more than 40% of your depreciable property

in service during the last 3 months of your tax year, you

must use the mid-quarter convention instead of the

half-year convention.

After you have determined the cost of the depreciable

property (minus any section 179 deduction and special

depreciation allowance taken on the property) and

whether it is 5-year or 7-year property, use the table,

shown next, to figure your depreciation if the half-year

convention applies.

Table 4. MACRS Percentage Table for 5- and

7-Year Property Using Half-Year

Convention

Recovery Year

5-Year Property

7-Year Property

1

2

3

4

5

6

7

8

20.00%

32.00%

19.20%

11.52%

11.52%

5.76%

14.29%

24.49%

17.49%

12.49%

8.93%

8.92%

8.93%

4.46%

See Pub. 946 for a discussion of the mid-quarter convention and for complete MACRS percentage tables.

Example. In June 2025, Kerry bought a desk and

three chairs for office use. The total bill for the furniture

was $1,975. The taxable business income for the year

was $3,000 without any deduction for the office furniture.

Kerry can elect to do one of the following.

• Take a section 179 deduction for the full cost of the office furniture.

• Take part of the cost of the furniture as a section 179

deduction and depreciate the balance.

• Not take the section 179 deduction and depreciate the

office furniture using its full cost.

The furniture is 7-year property under MACRS. Kerry

does not take a section 179 deduction. Kerry multiplies

$1,975 by 14.29% (0.1429) to get the MACRS depreciation deduction of $282.23.

Personal Property Converted to

Business Use

If you use property in your home office that was used previously for personal purposes, you cannot take a section

179 deduction for the property.

If you began using the property for personal purposes

after 1980 and before 1987 and change it to business use

in 2025, you cannot take a special depreciation allowance

for the property. However, you can depreciate it. You generally depreciate the property under the accelerated cost

recovery system (ACRS). However, if the depreciation under ACRS is greater in the first year than the depreciation

under MACRS, you must depreciate it under MACRS. For

information on ACRS, see Pub. 534, Depreciating Property Placed in Service Before 1987.

If you began using the property for personal purposes

after 1986 and change it to business use in 2025, you may

be able to take a special depreciation allowance for the

property. You generally depreciate the property under

MACRS. The basis for depreciation of property changed

from personal to business use is the lesser of the following.

• The adjusted basis of the property on the date of

change.

Publication 587 (2025)

17

• The fair market value of the property on the date of

deduction. See Line 30 in the Instructions for Schedule C

for more information.

If you began using the property for personal purposes

before 1981 and change it to business use in 2025, depreciate the property by the straight line or declining balance

method based on salvage value and useful life.

If you use your home in your farming business and file

Schedule F (Form 1040), report your entire deduction for

business use of the home on line 32 of Schedule F (Form

1040). Enter “Business Use of Home” on the dotted line

beside the entry.

change.

Recordkeeping

You do not have to use a particular method of recordkeeping, but you must keep records that proRECORDS vide the information needed to figure your deductions for the business use of your home. You should keep

canceled checks, receipts, and other evidence of expenses you paid.

Your records must show the following information.

• The part of your home you use for business.

• That you use part of your home exclusively and regu-

larly for business as either your principal place of business or as the place where you meet or deal with clients or customers in the normal course of your

business. However, see the earlier discussion, Exceptions to Exclusive Use under Qualifying for a Deduction.

• The depreciation and expenses for the business part.

You must keep your records for as long as they are important for any tax law. This is usually the later of the following

dates.

• 3 years from the return due date or the date filed.

• 2 years after the tax was paid.

Keep records to prove your home’s depreciable basis.

This includes records of when and how you acquired your

home, your original purchase price, any improvements to

your home, and any depreciation you are allowed because

you maintained an office in your home. You can keep copies of Forms 8829 or the Worksheet To Figure the Deduction for Business Use of Your Home, found later in this

publication, as records of depreciation.

For more information on recordkeeping, see Pub. 583.

Where To Deduct

Deduct expenses for the business use of your home on

Form 1040 or Form 1040-SR. Where you deduct these expenses on the form depends on whether you are a

self-employed person or a partner.

Self-Employed Persons

If you use your home in your trade or business and file

Schedule C (Form 1040), report the entire deduction for

business use of your home on line 30 of Schedule C

(Form 1040). Whether you need to complete and attach

Form 8829 to your return depends on how you figure your

18

Expenses Deductible Without Regard to a

Business Connection

Certain expenses related to the use of your home may be

deducted whether or not you use your home for business.

These expenses may include some or all of your mortgage interest, real estate taxes, and casualty losses attributable to a federally declared disaster. Where you deduct

these expenses depends on how you figure your deduction for business use of the home.

Using actual expenses to figure the deduction. In

general, you will deduct the business portion of these expenses on Schedule C (Form 1040) or Schedule F (Form

1040) as part of your deduction for business use of your

home. If you itemize your deductions, you will deduct the

personal portion of these expenses on Schedule A (Form

1040).

Home mortgage interest. The business portion of

your home mortgage interest allowed as a deduction this

year will be included in the business use of the home deduction you report on Schedule C (Form 1040), line 30, or

Schedule F (Form 1040), line 32. If you cannot deduct the

business portion of your home mortgage interest in full

this year, you will carry over the remaining home mortgage

interest to a subsequent year in which you use actual expenses to figure your business portion of the home deduction.

If you itemize your deductions on Schedule A (Form

1040), only include the personal part of your deductible

mortgage interest on Schedule A (Form 1040), line 8a or

8b. The personal portion of your home mortgage interest

will generally be the amount of deductible home mortgage

interest you figured when treating all home mortgage interest as a personal expense and applying the Schedule A

(Form 1040) limits on deducting home mortgage interest,

reduced by the business or rental portions deducted or

carried over as a business or rental expense on Schedule C, E, or F, or any form other than Schedule A. Home

mortgage interest that exceeds the amount you figured after applying the Schedule A (Form 1040) limits on deducting home mortgage interest is not deductible as a personal expense.

Real estate taxes. You figure the business portion of

your real estate taxes using Form 8829 (if you file Schedule C (Form 1040)) or the Worksheet To Figure the Deduction for Business Use of Your Home in this publication (if

you file Schedule F (Form 1040)). The business portion of

your real estate taxes allowed as a deduction this year will

be included in the business use of the home deduction

you report on Schedule C (Form 1040), line 30, or Schedule F (Form 1040), line 32. If you cannot deduct the

Publication 587 (2025)

business portion of your real estate taxes in full this year,

you will carry over those real estate taxes to a subsequent

year in which you use actual expenses to figure your business portion of the home deduction.

If you itemize your deductions on Schedule A (Form

1040), only include the personal part of your real estate

taxes on Schedule A (Form 1040), line 5b. The personal

portion of your real estate taxes will generally be the

amount of real estate taxes you paid for the home reduced

by the business or rental portions deducted or carried over

as a business or rental expense on Schedule C, E, or F, or

any form other than Schedule A.

Casualty losses. You will figure the business portion

of the casualty losses attributable to your home using

Form 8829 (if you file Schedule C (Form 1040)) or the

Worksheet To Figure the Deduction for Business Use of

Your Home in this publication (if you file Schedule F (Form

1040)). The business portion of your casualty losses allowed as a deduction this year will be reported on line 27

in Section B of Form 4684. If you cannot deduct the business portion of your casualty losses in full this year, you

will carry over those losses to a subsequent year in which

you use actual expenses to figure your business of the

home deduction.

Only include the personal portion of your casualty losses in Section A of the Form 4684 you attach to your return. If you itemize your deductions on Schedule A (Form

1040), you will include the deductible personal portion of

the casualty losses attributable to your home figured on

line 18 of Form 4684 on line 15 of Schedule A and the net

qualified disaster losses attributable to your home figured

on line 15 of Form 4684 on line 16 of Schedule A. If you

are increasing your standard deduction by a net qualified

disaster loss, you will add the net qualified disaster loss

figured on line 15 of Form 4684 to your standard deduction using a Schedule A.

Using the simplified method to figure your deduction. If you use the simplified method to figure your deduction for the business use of a home, your mortgage interest, real estate taxes, and casualty losses are treated

as personal expenses, and they are subject to any limits

that apply to deducting personal expenses. No part of any

of these expenses can be deducted as a business expense on Schedule C (Form 1040) or Schedule F (Form

1040). Generally, you can only deduct these expenses if

you itemize your deductions on Schedule A (Form 1040).

Business Expenses for Use of Your Home

Other expenses related to the use of your home may be

deducted only to the extent they are related to the business use of your home. These expenses include insurance, maintenance, utilities, and depreciation of your

home. You cannot deduct the personal portion of any of

these expenses. Where you deduct the business portion

of these expenses depends on how you figure your deduction for business use of the home.

Using actual expenses to figure your deduction. If

you file Schedule C (Form 1040), report the other home

Publication 587 (2025)

expenses that would not be allowable if you did not use

your home for business (for example, insurance, maintenance, utilities, and depreciation) on the appropriate lines

of your Form 8829. If you rent rather than own your home,

report the rent you paid on line 19 of Form 8829. If these

expenses exceed the deduction limit, carry the excess

over to next year. The carryover will be subject to next

year’s deduction limit.

If you file Schedule F (Form 1040), include your otherwise nondeductible expenses (insurance, maintenance,

utilities, depreciation, etc.) with your total business-use-of-the-home expenses on Schedule F (Form

1040), line 32. Enter “Business Use of Home” on the dotted line beside the entry. If these expenses exceed the deduction limit, carry the excess over to the next year. The

carryover will be subject to next year’s deduction limit.

Using the simplified method to figure your deduction. You cannot deduct any of these expenses. The simplified method is an alternative to calculating and substantiating these expenses. Figure your deduction using the

Simplified Method Worksheet.

Business Expenses Not for Use of Your

Home

No matter how you figure the deduction for business use

of your home, deduct business expenses that are not for

the use of your home itself (dues, salaries, supplies, certain telephone expenses, depreciation of equipment, etc.)

on the appropriate lines of Schedule C (Form 1040) or

Schedule F (Form 1040). These expenses are not for the

use of your home, so they are not subject to the deduction

limit for business use of the home expenses.

Partners

You may be allowed to deduct unreimbursed ordinary and

necessary expenses you paid on behalf of the partnership

(including qualified expenses for the business use of your

home) if you were required to pay these expenses under

the partnership agreement and they are trade or business

expenses under section 162.

If you are using actual expenses to figure your deduction for the business use of your home, use the Worksheet

To Figure the Deduction for Business Use of Your Home,

later. If you are using the simplified method to figure your

deduction for the business use of your home, use the Simplified Method Worksheet, later.

Deducting unreimbursed partnership expenses. See

the following forms and related instructions for information

about deducting unreimbursed partnership expenses.

• Schedule E (Form 1040), Supplemental Income and

Loss.

• Schedule SE (Form 1040), Self-Employment Tax.

• Schedule K-1 (Form 1065), Partner’s Share of Current

Year Income, Deductions, Credits, and Other Items.

19

More information. For more information about partners

and partnerships, see Pub. 541.

Worksheet To Figure the

Deduction for Business Use of

Your Home

This worksheet is to be used by taxpayers filing Schedule F (Form 1040) or by partners with certain unreimbursed ordinary and necessary expenses if using actual

expenses to figure the deduction. If you are using the simplified method to figure your deduction, use the Simplified

Method Worksheet, later.

Instructions for the Worksheet To

Figure the Deduction for Business

Use of Your Home

The Worksheet To Figure the Deduction for Business Use

of Your Home is to be used by taxpayers filing Schedule F

(Form 1040) or by partners with certain unreimbursed ordinary and necessary expenses if using actual expenses

to figure the deduction. The following instructions explain

how to complete each part of the worksheet.

Partners. See Partners under Where To Deduct, earlier,

before completing the worksheet.

Caution: If you file Schedule C (Form 1040) or Schedule C (Form 1040) with Form 1040-SS and use actual expenses to figure your deduction, use Form 8829 instead of

this worksheet.

Part 1—Part of Your Home Used for

Business

Lines 1–3. If you figure the percentage based on area,

use lines 1 through 3 to figure the business-use percentage. Enter the percentage on line 3.

You can use any other reasonable method that accurately reflects your business-use percentage. If you operate a daycare facility and you meet the exception to the

exclusive use test for part or all of the area you use for

business, you must figure the business-use percentage

for that area as explained under Daycare Facility, earlier. If

you use another method to figure your business percentage, skip lines 1 and 2 and enter the percentage on line 3.

Part 2—Figure Your Allowable Deduction

Line 4. If you file Schedule F (Form 1040), enter your total gross income that is related to the business use of your

home. This would generally be the amount on line 9 of

Schedule F (Form 1040).

Lines 5–7. Use lines 5, 6, and 7 for business use of the

home expenses that would have been deductible as a

personal expense if you had not used your home for busi20

ness. These expenses include certain casualty losses,

mortgage interest, and real estate taxes.

Taxpayers claiming the standard deduction. If you

claim the standard deduction, you will not include any

mortgage interest, or real estate taxes on lines 6 and 7; instead, you will claim the entire business use of the home

portion of those expenses using lines 14 and 15. If you are

not increasing your standard deduction by a net qualified

disaster loss, then you will not include any casualty losses

on line 5; instead, you will claim the entire business use of

the home portion of your casualty losses on line 27. If you

are filing Schedule A to increase your standard deduction

by a net qualified disaster loss, see Casualty losses reported on line 5, later.

Tip: You may prefer to itemize your deductions on

Schedule A to claim amounts on lines 5, 6, and 7, even if

your total personal deductions are less than the standard

deduction.

Casualty losses reported on line 5. Figure the amount

to include in column (b) of line 5 as follows.

Step 1. Complete a worksheet version of Section A of

Form 4684 treating all your casualty losses (and gains) as

personal expenses. If you are itemizing your deductions,

when completing line 17 of this worksheet version of Form

4684, enter 10% of your adjusted gross income excluding

the gross income and deductions attributable to the business use of the home. Do not file this worksheet version of

Form 4684; instead, keep it for your records. You will complete a separate Form 4684 to attach to your return using

only the personal portion of your casualty losses (and

gains) for Section A.

Step 2. Include in column (b) of line 5 the loss amounts

from lines 15 and 18 of this worksheet version of Form

4684 that are attributable to the home in which you conducted the business and are the result of a federally declared disaster. If you are claiming an increased standard

deduction instead of itemizing your deductions, only use a

net qualified disaster loss on line 15 of the worksheet version of Form 4684 for this Step 2.

See the instructions for line 33, later, for the business

use of the home casualty losses that you must include in

Section B of the separate Form 4684 you attach to your

return.

Casualty losses reported on Schedule A. Use only

the personal portion of your casualty losses (and gains)

when completing Section A of the separate Form 4684

you attach to your return. The separate Form 4684 you attach to your return is used to figure the casualty losses

you can include on line 15 of Schedule A and the net

qualified disaster losses you can include on line 16 of

Schedule A.

Excess casualty losses. See the instructions for

line 27, later, to deduct the part of your casualty losses for

business use of your home not allowed because of the

limits on deducting casualty losses as a personal expense, including any losses that are not the result of a federally declared disaster.

Publication 587 (2025)

Worksheet To Figure the Deduction for Business Use of

Your Home

Keep for Your Records

Use this worksheet if you file Schedule F (Form 1040) or you are a partner, and you are using actual expenses to figure

your deduction for business use of the home. Use a separate worksheet for each qualified business use of your home.

PART 1—Part of Your Home Used for Business:

1) Area of home used for business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2) Total area of home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3) Percentage of home used for business (divide line 1 by line 2 and show result as percentage) . . . . .

PART 2—Figure Your Allowable Deduction

4) Gross income from business (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a)

(b)

Direct

Indirect

Expenses

Expenses

5) Casualty losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5)

6) Deductible mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . .

6)

7) Real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7)

8) Total of lines 5 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8)

9) Multiply line 8, column (b), by line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9)

10) Add line 8, column (a), and line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10)

11) Business expenses not from business use of home (see instructions) . . . . . . . . . 11)

12) Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13) Deduction limit. Subtract line 12 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14) Excess mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15) Excess real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16) Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17) Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18) Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19) Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20) Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21) Add lines 14 through 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

%

4)

12)

13)

14)

15)

16)

17)

18)

19)

20)

21)

22) Multiply line 21, column (b), by line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22)

23) Carryover of operating expenses from prior year (see instructions) . . . . . . . . . . . . 23)

24) Add line 21, column (a), line 22, and line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25) Allowable operating expenses. Enter the smaller of line 13 or line 24 . . . . . . . . . . . . . . . . . . . . . . . . .

26) Limit on excess casualty losses and depreciation. Subtract line 25 from line 13 . . . . . . . . . . . . . . . . .

27) Excess casualty losses (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27)

28) Depreciation of your home from line 40 below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28)

29) Carryover of excess casualty losses and depreciation from prior year (see

instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29)

30) Add lines 27 through 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31) Allowable excess casualty losses and depreciation. Enter the smaller of line 26 or line 30 . . . . . . . .

32) Add lines 10, 25, and 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33) Casualty losses included on lines 10 and 31 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34) Allowable expenses for business use of your home. (Subtract line 33 from line 32.) See instructions

for where to enter on your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 3—Depreciation of Your Home

35) Smaller of adjusted basis or fair market value of home (see instructions) . . . . . . . . . . . . . . . . . . . . . . .

36) Basis of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37) Basis of building (subtract line 36 from line 35) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38) Business basis of building (multiply line 37 by line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39) Depreciation percentage (from applicable table or method) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40) Depreciation allowable (multiply line 38 by line 39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 4—Carryover of Unallowed Expenses to Next Year

41) Operating expenses. Subtract line 25 from line 24. If less than zero, enter -0- . . . . . . . . . . . . . . . . . . .

42) Excess casualty losses and depreciation. Subtract line 31 from line 30. If less than zero,

enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publication 587 (2025)

1)

2)

3)

24)

25)

26)

30)

31)

32)

33)

34)

35)

36)

37)

38)

39)

40)

%

41)

42)

21

Mortgage interest reported on line 6. If you are claiming the standard deduction, do not report an amount on

line 6. If you itemize your deductions, figure the amount to

include in column (b) of line 6 as follows.

Step 1. Treat all the mortgage interest you paid as a

personal expense and figure the amount that would be deductible as an itemized deduction on Schedule A. See

Pub. 936 for more information about figuring the home

mortgage interest deduction and the limits that may apply.

Step 2. Include in column (b) of line 6 the amount of

deductible mortgage interest figured in Step 1 that is attributable to the home in which you conducted the business. Because the limits on deducting mortgage interest

as a personal expense are figured using all loans secured

by your home(s), do not claim mortgage interest in column

(a) as a direct expense, even if you use a separate structure in your home in connection with your trade or business.

Mortgage interest reported on Schedule A. When

you figure your itemized deduction for mortgage interest

on Schedule A, include the following amounts of deductible mortgage interest that you figured in Step 1 to the extent they are not deducted on another form, such as

Schedule E, as a rental expense.

• The amount of deductible mortgage interest you figured in Step 1 that is not attributable to the home in

which you conducted the business.

• The personal portion of deductible mortgage interest

you included in column (b) of line 6. For example, if

your business percentage on line 3 is 30%, 70% of the

amount you included in column (b) of line 6 is deductible as an itemized deduction on Schedule A.

Excess mortgage interest. See the instructions for

line 14, later, to deduct the part of your mortgage interest

from loans used to buy, build, or substantially improve the

home in which you conducted business that is not allowed

on line 6 because of the limits on deducting home mortgage interest as a personal expense.

Real estate taxes reported on line 7. If you are claiming the standard deduction, do not report an amount on

line 7. If you are itemizing deductions, figure the amount to

include on line 7 as follows.

Step 1. If the total of your state and local income (or if

elected on your Schedule A, general sales) taxes, real estate taxes, and personal property taxes is not more than

$10,000 ($5,000 if married filing separately), enter all the

real estate taxes attributable to the home in which you

conducted business in column (b) of line 7.

Step 2. If you do not meet the condition of Step 1, use

the following worksheet to figure the amount to include in

column (a) of line 7.

22

Line 7 Worksheet

1. Enter your state and local income taxes (or, if you

elect on Schedule A, your state and local general

sales taxes) that are personal expenses . . . . . . 1.

2. Enter all the state and local real estate taxes you

paid on the home in which you conducted

business . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter any other state and local real estate taxes

you paid that are a personal expense and not

included on line 2 . . . . . . . . . . . . . . . . . . . . 3.

4. Enter your state and local personal property

taxes that are a personal expense . . . . . . . . . . 4.

5. Add lines 1 through 4 . . . . . . . . . . . . . . . . . 5.

6. Multiply line 2 by the percentage on line 3 of the

Worksheet To Figure the Deduction for Business

Use of Your Home . . . . . . . . . . . . . . . . . . . 6.

7a. Subtract line 6 from line 5 . . . . . . . . . . . . . . . 7a.

7b. Is line 5 less than or equal to $10,000 ($5,000 if

married filing separately)?

Yes. Skip lines 7c and 7d. Enter $10,000

($5,000 if married filing separately) on line 8.

Then proceed to line 9.

No. Go to line 7c.

7c. Is line 7a greater than or equal to $40,000

($20,000 if married filing separately)?

Yes. Skip line 7d. Enter $10,000 ($5,000 if

married filing separately) on line 8. Then proceed

to line 9.

No. Go to line 7d.

7d. Would your modified adjusted gross income on

line 4 of the State and Local Tax Deduction

Worksheet in the Instructions for Schedule A

(Form 1040) be less than or equal to $500,000

($250,000 if married filing separately) if you

entered $40,000 ($20,000 if married filing

separately) on line 8 of this worksheet, next?

Yes. Enter $40,000 ($20,000 if married filing

separately) on line 8. Then proceed to line 9.

No or Unsure. See Iteration instructions,

later.

8. Enter the overall limit on the deduction for state

and local income, sales, and property taxes from

line 7b, 7c, 7d, or Step 6 of the Iteration

instructions (as applicable). . . . . . . . . . . . . . . 8.

9. Subtract line 7a from line 8. If zero or less,

enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Real estate taxes reported on line 7. Enter the

smaller of line 6 or line 9 here and in column (a)

of line 7 of the Worksheet To Figure the

Deduction for Business Use of Your Home . . . . 10.

11. Excess real estate taxes reported on line 15.

Subtract line 10 from line 6 . . . . . . . . . . . . . . 11.

Publication 587 (2025)

Real estate taxes reported on Schedule A. When

you figure your itemized deduction for state and local

taxes on Schedule A, only include the personal portion of

your real estate taxes on line 5b of Schedule A.

Excess real estate taxes. See the instructions for

line 15, later, to deduct the part of your real estate taxes

for the home in which you conducted business that is not

allowed on line 7 because of the limitation on deducting

state and local taxes as a personal expense.

Iteration instructions. Use these instructions if you

answered “No” on line 7d of the Line 7 Worksheet, earlier.

Step 1. Enter $10,000 ($5,000 if married filing separately) on line 8 of the Line 7 Worksheet.

Step 2. Complete lines 9, 10, and 11 of the Line 7

Worksheet. Use the results from the Line 7 Worksheet to

complete the Worksheet to Figure the Deduction for Business Use of Your Home. Then use the results from the

Worksheet to Figure the Deduction for Business Use of

Your Home to determine the deduction for expenses for

business use of your home on Schedule F, line 32. If you

are a partner deducting unreimbursed partnership expenses, include the results in the appropriate column of

Schedule E, line 28. See Partners under Where To Deduct, earlier.

Step 3. Schedule E filers. Determine your total partnership income or loss on line 32 using the amount from

Step 2. Complete Schedule E, then figure any passive activity losses (Form 8582); net operating loss (Schedule 1,

line 8a); self-employment tax (Schedule SE); the deduction for one-half of self-employment tax (Schedule 1,

line 15); self-employed SEP, SIMPLE, and qualified plans

deduction (Schedule 1, line 16); self-employed health insurance deduction (Schedule 1, line 17); IRA deduction

(Schedule 1, line 20); student loan interest deduction

(Schedule 1, line 21); adjustments to income (Schedule 1,

line 26); and adjusted gross income (Form 1040 or

1040-SR, line 11a).

Schedule F filers. Determine your net profit (or loss)

on line 34 using the amount from Step 2. Then figure your

net operating loss (Schedule 1, line 8a); self-employment

tax (Schedule SE); the deduction for one-half of self-employment tax (Schedule 1, line 15); IRA deduction (Schedule 1, line 20); student loan interest deduction (Schedule

1, line 21); adjustments to income (Schedule 1, line 26);

and adjusted gross income (Form 1040 or 1040-SR,

line 11a).

Step 4. Enter the adjusted gross income amount determined in Step 3 on line 2 of the State and Local Tax Deduction Worksheet in the Instructions for Schedule A

(Form 1040). Figure your modified adjusted gross income

on line 4 of the State and Local Tax Deduction Worksheet.

• If this is the first time you completed Step 4, continue

to Step 5.

• If you are repeating Step 4, compare the current cal-

culation of modified adjusted gross income from this

step with the most recent prior calculation of modified

adjusted gross income from this step. Is the difference

between the current calculation of modified adjusted

Publication 587 (2025)

gross income and the most recent prior calculation of

adjusted gross income more than $1?

1. Yes. Continue to Step 5.

2. No. Use the deduction for expenses for business use

of your home determined in Step 2; the amounts determined in Step 3; the modified adjusted gross income determined in Step 4; and the overall limit on

the deduction for state and local income, sales, and

property taxes determined in the most recent calculation in Step 5 to complete your return. STOP.

Step 5. Use the modified adjusted gross income determined in Step 4 to compute the overall limit on the deduction for state and local income, sales, and property taxes

on line 9 of the State and Local Tax Deduction Worksheet

in the Instructions for Schedule A (Form 1040).

Step 6. Enter the overall limit on the deduction for state

and local income, sales, and property taxes determined in

Step 5 on line 8 of the Pub. 587 Line 7 Worksheet. Repeat

Steps 2 through 4.

Lines 9 and 10. Multiply your total indirect expenses

(line 8, column (b)) by the business percentage from

line 3. Enter the result on line 9. Add this amount to the total direct expenses (line 8, column (a)) and enter the total

on line 10.

Lines 11–13. Enter any other business expenses that are

not attributable to business use of the home on line 11.

Farmers should generally enter their total farm expenses

before deducting office-in-the-home expenses. Do not enter the deductible part of your self-employment tax. Add

the amounts on lines 10 and 11, and enter the total on

line 12. Subtract line 12 from line 4, and enter the result on

line 13. This is your deduction limit. You use it to determine whether you can deduct any of your other expenses

for business use of the home this year. If you cannot, you

will carry them over to the next year in which you use actual expenses to figure the deduction.

If line 13 is zero or less, enter -0-. Deduct your expenses for deductible home mortgage interest, real estate

taxes, casualty losses, and any business expenses not attributable to use of your home on the appropriate lines of

the schedule(s) for Form 1040 or Form 1040-SR, as explained earlier under Where To Deduct.

Lines 14–23. On lines 14 through 20, enter your otherwise nondeductible expenses for the business use of your

home. These include utilities, insurance, repairs, and

maintenance. If you rent, report the amount paid on

line 17. In column (a), enter the expenses that benefit only

the business part of your home (direct expenses). In column (b), enter the expenses that benefit the entire home

(indirect expenses). Multiply line 21, column (b), by the

business-use percentage (line 3) and enter this amount on

line 22.

If you deducted actual expenses for the business use of

your home on your 2024 tax return, enter on line 23 the

amount from line 41 of your 2024 worksheet. If you used

the simplified method in 2024, enter on line 23 the amount

from line 6a of your 2024 Simplified Method Worksheet.

23

Line 14—Excess home mortgage interest. If you

are claiming the standard deduction, enter all the home

mortgage interest paid for loans used to buy, build, or substantially improve the home in which you conducted business in column (b) of line 14. Do not include mortgage interest on a loan that did not benefit your home (for

example, a home equity loan used to pay off credit card

bills, to buy a car, or to pay tuition costs).

If you are itemizing deductions on Schedule A and the

amount you figured in Step 1 under Mortgage interest reported on line 6, earlier, was less than the full amount of

interest you paid because of the limits on deducting home

mortgage interest as a personal expense, include the excess attributable to the loans used to buy, build, or substantially improve the home in which you conducted business in column (b) of line 14.

Example. If you paid $15,000 of home mortgage interest on loans used to buy, build, or substantially improve

the home in which you conducted business but would only

be able to deduct $12,000 on Schedule A because of the

limits that apply to deducting home mortgage interest as a

personal expense, include $3,000 ($15,000 - $12,000 =

$3,000) in column (b) of line 14.

Line 15—Excess real estate taxes. If you are claiming the standard deduction, enter all the real estate taxes

paid on the home in which you conducted business in column (b) of line 15.

If you are itemizing deductions on Schedule A and you

used the Line 7 Worksheet to figure the amount to include

in column (a) of line 7, then include the amount from

line 11 of the Line 7 Worksheet in column (a) of line 15 of

the Worksheet To Figure the Deduction for Business Use

of Your Home; otherwise, do not enter an amount on

line 15.

Lines 26–31. On lines 26 through 31, figure your limit on

deductions for excess casualty losses and depreciation.

If you deducted actual expenses for business use of

your home on your 2024 tax return, enter on line 29 the

amount from line 42 of your 2024 worksheet. If you used

the simplified method in 2024, enter on line 29 the amount

from line 6b of your 2024 Simplified Method Worksheet.

Line 27—Excess casualty loss. Multiply the casualty losses attributable to the home in which you conducted business that are in excess of the amount reported on

line 5 (if any) by the business percentage of those losses

and enter the result.

Lines 32–34. On line 32, total all allowable business-use-of-the-home deductions.

On line 33, enter the total of the casualty losses shown

on lines 10 and 31. Enter the amount from line 33 on

line 27 of Form 4684, Section B. Attach a statement to

your tax return showing how you calculated the deductible

loss (you can use the worksheet as your attachment) and

enter "See attached statement" above line 27 of Form

4684. See the Instructions for Form 4684 for more information on completing that form.

Line 34 is the total (other than casualty losses) allowable as a deduction for business use of your home. If you

24

file Schedule F (Form 1040), enter this amount on line 32,

Other expenses, and enter “Business Use of Home” on

the line beside the entry. Do not add the specific expenses

into other line totals of Part II of Schedule F (Form 1040).

If you are a partner, see Where To Deduct, earlier, for

information on how to claim the deduction.

Part 3—Depreciation of Your Home

Figure your depreciation deduction on lines 35 through 40.

On line 35, enter the smaller of the adjusted basis or the

fair market value of the property at the time you first used it

for business. Do not adjust this amount for changes in basis or value after that date. Allocate the basis between the

land and the building on lines 36 and 37. You cannot depreciate any part of the land. On line 39, enter the correct

percentage for the current year from the tables in Pub.

946. Multiply this percentage by the business basis to get

the depreciation deduction. Enter this figure on lines 40

and 28. Complete and attach Form 4562 to your return if

this is the first year you used your home, or an improvement or addition to your home, for business.

Part 4—Carryover of Unallowed Expenses to

Next Year

Complete these lines to figure the expenses that must be

carried forward to the next year in which you use actual

expenses.

Worksheets To Figure the

Deduction for Business Use of

Your Home (Simplified Method)

Simplified Method Worksheet and the Daycare Facility

Worksheet (for simplified method) in this section are to be

used by taxpayers filing Schedule F (Form 1040) or by

partners with certain unreimbursed ordinary and necessary expenses if using the simplified method to figure the

deduction. If you are filing Schedule C (Form 1040) to report a business use of your home in your trade or business and you are using the simplified method to figure the

deduction, use the Simplified Method Worksheet and the

Daycare Facility Worksheet (for simplified method) in your

Instructions for Schedule C for that business use.

The Area Adjustment Worksheet (for simplified method)

in this section may be used by any taxpayer using the simplified method to figure the deduction.

Publication 587 (2025)

Simplified Method Worksheet

Use this worksheet if you file Schedule F (Form 1040) or you are a partner, and you are using the simplified method to

figure your deduction for business use of the home. Use a separate worksheet for each qualified business use of your

home.

1. Enter the amount of the gross income limitation. See the Instructions for the Simplified

Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Allowable square footage for the qualified business use. Do not enter more than 300 square

feet. See the Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Simplified method amount

a. Maximum allowable amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a.

$5

b. For daycare facilities not used exclusively for business, enter the decimal amount from the

Daycare Facility Worksheet; otherwise, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b.

c. Multiply line 3a by line 3b and enter result to 2 decimal places . . . . . . . . . . . . . . . . . . . . . . . . . . 3c.

4. Multiply line 2 by line 3c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Allowable expenses using the simplified method. Enter the smaller of line 1 or line 4. If

zero or less, enter -0-. See Where To Deduct, earlier, for where to enter this amount on

your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Carryover of unallowed expenses from a prior year that are not allowed in 2025.

a. Operating expenses. Enter the amount, if any, from your last Worksheet To Figure the

Deduction for Business Use of Your Home, line 41 (line 40 if before 2018). See the

Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a.

b. Excess casualty losses and depreciation. Enter the amount, if any, from your last

Worksheet To Figure the Deduction for Business Use of Your Home, line 42 (line 41 if

before 2018). See the Instructions for the Simplified Method Worksheet . . . . . . . . . . . . . . . . . 6b.

Daycare Facility Worksheet (for simplified method)

1. Multiply days used for daycare during the year by hours used per day . . . . . . . . . . . . . . . . 1.

2. Total hours available for use during the year. See the Instructions for the Daycare

Facility Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Divide line 1 by line 2. Enter the result as a decimal amount here and on line 3b of the

Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

Publication 587 (2025)

25

Area Adjustment Worksheet (for simplified method)

If you used the same area for your qualified business use for the entire year, complete only Part I; otherwise, skip Part I

and complete Part II using lines 1 through 5 to help you figure the amount to enter for each month. All amounts reported

on this worksheet must be in square feet.

Part I. Same area was used for the entire year.

1. Area used for this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Shared use. Complete line 2 if someone else also used the home to conduct business that qualifies

for the deduction; otherwise, enter 300 on line 2d and go to line 3.

a. Area not shared. Enter portion of line 1 that was not shared with another person’s qualified

business use of the home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.

b. Total area shared with another person’s qualified business use. Subtract line 2a from line 1 . . . . . 2b.

c. Reasonable allocation of shared area to this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . . 2c.

d. Add lines 2a and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d.

3. Multiple qualified business uses. Complete line 3 if you used the home for more than one qualified

business use; otherwise, enter 300 on line 3d and go to line 4.

a. Total area of home used for all your qualified business uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a.

b. Maximum area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b.

300

c. Enter the smaller of line 3a and 3b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c.

d. Reasonable allocation of line 3c to this qualified business use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3d.

4. Maximum area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

300

5. Enter the smaller of lines 1, 2d, 3d, and 4. Enter the result on line 2 of the Simplified Method

Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

Part II. Area changed during the year or was used for only part of the year.

6. Complete lines 6a through 6n if you used the area for this qualified business use for part of the year or the area used for this

qualifying business use changed during the year.

(i) Month

Note: If your qualified business use was less than 15 days in a month,

enter -0- in column (ii) for that month; otherwise, use lines 1 through 5

above for each month, and enter the amount you get for line 5 in column (ii)

for that month.

a.

January

...............................................................

b.

February

...............................................................

c.

March

...............................................................

d.

April

...............................................................

e.

May

...............................................................

f.

June

...............................................................

g.

July

...............................................................

h.

August

...............................................................

i.

September

...............................................................

j.

October

...............................................................

k.

November

...............................................................

l.

December

...............................................................

(ii) Area

m. Add lines 6a through 6l, column (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6m.

n. Average monthly allowable square footage. Divide line 6m by 12. Enter the result on line 2 of the

Simplified Method Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6n.

26

Publication 587 (2025)

Instructions for the Simplified Method

Worksheet

If you are a partner or you file Schedule F (Form 1040),

and you elected to use the simplified method, use the

Simplified Method Worksheet. The following instructions

explain how to complete this worksheet.

Partners. See Partners under Where To Deduct, earlier,

before completing the Simplified Method Worksheet.

Use the Simplified Method Worksheet to figure the

amount of expenses you may deduct for a qualified business use of a home if you are electing to use the simplified

method for that home. If you are not electing to use the

simplified method, use Form 8829 or the Worksheet To

Figure the Deduction for Business Use of Your Home, earlier, as appropriate.

Line 1. If all gross income from your trade or business is

from this qualified business use of your home, figure your

gross income limitation as follows.

A. Enter the amount of gross income. If you file Schedule F

(Form 1040), this amount would generally be the amount

on line 9 of Schedule F . . . . . . . . . . . . . . . . . . . . . .

B. Enter any gain derived from the business use of your

home and shown on Form 8949 (and included on

Schedule D) or Form 4797 . . . . . . . . . . . . . . . . . . . .

C. Add lines A and B . . . . . . . . . . . . . . . . . . . . . . . . .

D. Business expenses not from business use of the home . .

E. Enter the total amount of any losses (as a positive

number) shown on Form 8949 (and included on

Schedule D) or Form 4797 that are allocable to the

business but not allocable to the business use of the

home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F. Add lines D and E . . . . . . . . . . . . . . . . . . . . . . . . .

G. Gross income limitation. Subtract line F from line C. Enter

the result here and on line 1 . . . . . . . . . . . . . . . . . . .

If some of the income is from a place of business other

than your home, you must first determine the part of your

gross income from the business use of your home. In

making this determination, consider the amount of time

you spent at each location as well as other facts. After determining the part of your gross income from the business

use of your home, subtract from that amount the total expenses and any losses that are allocable to the business

in which you use your home but that are not allocable to

the business use of the home.

Only include on line A the gross income from the business that is related to the business use of your home.

Only include on line D and line E the deductible business

expenses and losses that are related to the business activity in the home but not related to the business use of the

home itself.

Note: If you had more than one home in which you

conducted this business during the year, include only the

income earned and the deductions attributable to that income during the period you owned the home for which

you elected to use the simplified method.

Publication 587 (2025)

Line 2. If you used the same area for the entire year, enter the smaller of the square feet you actually used or 300.

If you and your spouse conducted the business as a qualified joint venture, split the square feet between you and

your spouse in the same manner you split your other tax

attributes. If you shared space with someone else, used

the home for business for only part of the year, or the area

you used changed during the year, see Allowable area under Using the Simplified Method, earlier, before entering

an amount on this line. Do not enter more than 300 square

feet or, if applicable, the average monthly allowable

square footage on this line. See Part-year use or area

changes (for simplified method only) under Using the Simplified Method, earlier, for more information on how to figure your average monthly allowable square footage.

Line 3b. If your qualified business use is providing daycare, you may need to account for the time that you used

the same part of your home for other purposes. If you

used the part of your home exclusively and regularly for

providing daycare, enter 1.0 on line 3b. If you did not use

the part of your home exclusively for providing daycare,

complete the Daycare Facility Worksheet to figure what

number to enter on line 3b.

Line 6. If you are using the simplified method this year,

you cannot deduct the amounts you entered on lines 6a

and 6b this year. If you figure your deduction for business

use of the home using actual expenses next year, you will

be able to include these expenses when you figure your

deduction.

Line 6a. If you did not complete a 2024 Worksheet To

Figure the Deduction for Business Use of Your Home,

then your carryover of prior-year operating expenses is the

amount of operating expenses shown in Part 4 of the last

Worksheet To Figure the Deduction for Business Use of

Your Home, if any, that you completed using actual expenses in order to claim a deduction for business use of the

home as a partner or Schedule F filer.

Line 6b. If you did not complete a 2024 Worksheet To

Figure the Deduction for Business Use of Your Home,

then your carryover of prior-year excess casualty losses

and depreciation is the amount of excess casualty losses

and depreciation shown in Part 4 of the last Worksheet To

Figure the Deduction for Business Use of Your Home, if

any, that you completed using actual expenses to claim a

deduction for business use of the home as a partner or

Schedule F filer.

Caution: If you filed Form 1040-SS and claimed the

deduction for business use of your home, see the Instructions for Form 8829 and Schedule C (Form 1040) for more

information.

Instructions for the Daycare Facility

Worksheet

Use the Daycare Facility Worksheet (for simplified

method) to figure the percentage to use on line 3b of the

Simplified Method Worksheet. If you do not use the area

of your home exclusively for daycare, you must reduce the

27

amount on line 3a before figuring your deduction using the

simplified method.

Tip: If you used at least 300 square feet for daycare

regularly and exclusively during the year, then you do not

need to complete this worksheet. This worksheet is only

needed if you did not use the allowable area exclusively

for daycare.

Line 1. Enter the total number of hours the facility was

used for daycare during the year.

Example. Your home is used Monday through Friday

for 12 hours per day for 250 days during the year. It is also

used on 50 Saturdays for 8 hours a day. Enter 3,400 hours

on line 4 (3,000 hours for weekdays plus 400 hours for

Saturdays).

Line 2. If you used your home for daycare during the entire year, multiply 365 days (366 for a leap year) by 24

hours, and enter the result.

If you started or stopped using your home for daycare

during the year, you must prorate the number of hours

based on the number of days the home was available for

daycare. Multiply 24 hours by the number of days available and enter that result.

Instructions for the Area Adjustment

Worksheet

Use the Area Adjustment Worksheet (for simplified

method) to figure the area that you may use to figure your

deduction.

Line 2. If you and another person both used the home to

conduct business that qualifies for the deduction, the

same area cannot be used by both persons to figure the

deduction.

Line 2c. With the other people using the home for qualified business use, determine a reasonable allocation of

shared space to your qualified business use. Do not include area that is claimed by another person.

Line 3. If you used your home for more than one qualified

business use, the total area that you can use to figure the

deduction is still only 300 square feet, not 300 square feet

per business use. You may allocate the square footage

among your qualified business uses in any reasonable

manner, but you may not allocate more square feet to a

qualified business use than was actually used.

Line 3d. Allocate part of line 3c to this qualified business

use. Do not allocate more square feet to this qualified

business use than was actually used during the year. Do

not allocate any amount on line 3c to this qualified business use that you allocated to another qualified business

use.

Line 6. If you only used the area for this qualified business use for part of the year or the area used for this qualifying business use changed during the year, then you

need to figure the average monthly allowable square foot28

age. To do this, use lines 1 through 5 of this worksheet for

each month. For example, for January, complete lines 1

through 5 using the area and allocation information for

January only; then enter the result in line 6a, column (ii). If,

in any month, you did not have 15 or more days of this

qualified business use, enter -0- for that month. For example, if you did not begin using your home for this qualified

business use until January 20, enter -0- in line 6a, column

(ii).

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications,

forms, or instructions, go to IRS.gov to find resources that

can help you right away.

Tax reform. Tax reform legislation impacting federal

taxes, credits, and deductions was enacted in P.L. 119-21,

commonly known as the One Big Beautiful Bill Act, on July

4, 2025. Go to IRS.gov/OBBB for more information and

updates on how this legislation affects your taxes.

Preparing and filing your tax return. After receiving all

your wage and earnings statements (Forms W-2, W-2G,

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment

compensation statements (by mail or in a digital format) or

other government payment statements (Form 1099-G);

and interest, dividend, and retirement statements from

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you

qualify for free tax preparation, or hire a tax professional to

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax

preparation may not be available through Free File. Go

to IRS.gov/FreeFile to see if you qualify for free online

federal tax preparation, e-filing, and direct deposit or

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA)

program offers free tax help to people with

low-to-moderate incomes, persons with disabilities,

and limited-English-speaking taxpayers who need

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) pro-

gram offers free tax help for all taxpayers, particularly

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

Publication 587 (2025)

Go to IRS.gov/TCE or download the free IRS2Go app

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and quali-

fied veterans may use MilTax, a free tax service offered by the Department of Defense through Military

OneSource. For more information, go to

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Also, the IRS offers Free Fillable Forms, which can

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the

earned income credit (EITC).

• The Online EIN Application (IRS.gov/EIN) helps you

get an employer identification number (EIN) at no

cost.

• The Tax Withholding Estimator (IRS.gov/W4App)

makes it easier for you to estimate the federal income

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On

IRS.gov, you can get up-to-date information on

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publica-

tions. You will find details on the most recent tax

changes and interactive links to help you find answers

to your questions.

• You may also be able to access tax information in your

e-filing software.

Need someone to prepare your tax return? There are

various types of tax return preparers, including enrolled

agents, certified public accountants (CPAs), accountants,

and many others who don’t have professional credentials.

If you choose to have someone prepare your tax return,

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification

number (PTIN).

Publication 587 (2025)

Although the tax preparer always signs the return,

you’re ultimately responsible for providing all the

CAUTION information required for the preparer to accurately

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns

for others should have a thorough understanding of tax

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

!

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure

W-2 filing options to CPAs, accountants, enrolled agents,

and individuals who process Form W-2, Wage and Tax

Statement; and Form W-2c, Corrected Wage and Tax

Statement.

Business tax account. If you are a sole proprietor, a

partnership, an S corporation, a C corporation, or a single-member limited liability company (LLC), you can view

your tax information on record with the IRS and do more

with a business tax account. Go to IRS.gov/

BusinessAccount for more information.

IRS social media. Go to IRS.gov/SocialMedia to see the

various social media tools the IRS uses to share the latest

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our

highest priority. We use these tools to share public information with you. Don’t post your social security number

(SSN) or other confidential information on social media

sites. Always protect your identity when using any social

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English

and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosASL.

Over-the-Phone Interpreter (OPI) Service. The IRS offers the OPI Service to taxpayers needing language interpretation. The OPI Service is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every

VITA/TCE tax return site. This service is available in Spanish, Mandarin, Cantonese, Korean, Vietnamese, Russian,

and Haitian Creole.

Accessibility Helpline available for taxpayers with

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and

future accessibility products and services available in alternative media formats (for example, braille-ready, large

print, audio, etc.). The Accessibility Helpline does not

have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/

LetUsHelp.

Alternative media preference. Form 9000, Alternative

Media Preference, or Form 9000(SP) allows you to elect to

29

receive certain types of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille-Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or you can go to

IRS.gov/OrderForms to place an order.

Mobile-friendly forms. You’ll need an IRS Online Account (OLA) to complete mobile-friendly forms that require

signatures. You’ll have the option to submit your form(s)

online or download a copy for mailing. You’ll need scans of

your documents to support your submission. Go to

IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple’s iBooks for

iPad. Our eBooks haven’t been tested on other dedicated

eBook readers, and eBook functionality may not operate

as intended.

Access your online account (individual taxpayers

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax

year.

• See payment plan details or apply for a new payment

plan.

• Make a payment or view 5 years of payment history

and any pending or scheduled payments.

• Access your tax records, including key data from your

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

Get a transcript of your return. With an online account,

you can access a variety of information to help you during

the filing season. You can get a transcript, review your

most recently filed tax return, and get your adjusted gross

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional

submit an authorization request to access your individual

30

taxpayer IRS OLA. For more information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit,

which securely and electronically transfers your refund directly into your financial account. Direct deposit also

avoids the possibility that your check could be lost, stolen,

destroyed, or returned undeliverable to the IRS. Eight in

10 taxpayers use direct deposit to receive their refunds. If

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank

or credit union that can open an account online.

Reporting and resolving your tax-related identity

theft issues.

• Tax-related identity theft happens when someone

steals your personal information to commit tax fraud.

Your taxes can be affected if your SSN is used to file a

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by

email, text messages (including shortened links), telephone calls, or social media channels to request or

verify personal or financial information. This includes

requests for personal identification numbers (PINs),

passwords, or similar information for credit cards,

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft

Central webpage, for information on identity theft and

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or

stolen or you suspect you’re a victim of tax-related

identity theft, you can learn what steps you should

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund.

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February

for returns that claimed the EITC or the additional

CAUTION child tax credit (ACTC). This applies to the entire

refund, not just the portion associated with these credits.

!

Making a tax payment. The IRS recommends paying

electronically whenever possible. Options to pay electronically are included in the list below. Payments of U.S. tax

must be remitted to the IRS in U.S. dollars. Digital assets

are not accepted. Go to IRS.gov/Payments for information

Publication 587 (2025)

on how to make a payment using any of the following options.

• IRS Direct Pay: Pay taxes from your bank account. It’s

free and secure, and no sign-in is required. You can

change or cancel within 2 days of scheduled payment.

• Debit Card, Credit Card, or Digital Wallet: Choose an

approved payment processor to pay online or by

phone.

• Electronic Funds Withdrawal: Schedule a payment

when filing your federal taxes using tax return preparation software or through a tax professional.

Schedule LEP. You can use Schedule LEP (Form 1040),

Request for Change in Language Preference, to state a

preference to receive notices, letters, or other written communications from the IRS in an alternative language. You

may not immediately receive written communications in

the requested language. The IRS’s commitment to LEP

taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive

communications, including notices and letters, in English

until they are translated to your preferred language.

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC.

Go to IRS.gov/LetUsHelp for the topics people ask about

most. If you still need help, TACs provide tax help when a

tax issue can’t be handled online or by phone. All TACs

now provide service by appointment, so you’ll know in advance that you can get the service you need without long

wait times. Before you visit, go to IRS.gov/TAC to find the

nearest TAC and to check hours, available services, and

appointment options. Or, on the IRS2Go app, under the

Stay Connected tab, choose the Contact Us option and

click on “Local Offices.”

Note: The IRS uses the latest encryption technology to

ensure that the electronic payments you make online, by

phone, or from a mobile device using the IRS2Go app are

safe and secure. Paying electronically is quick and easy.

Below is a message to you from the Taxpayer Advocate

Service, an independent organization established by Congress.

What if I can’t pay now? Go to IRS.gov/Payments for

more information about your options.

The Taxpayer Advocate Service (TAS)

Is Here To Help You

• Electronic Federal Tax Payment System: This is the

best option for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at

a participating retail store.

• Same-Day Wire: You may be able to do same-day

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once

you complete the online process, you will receive immediate notification of whether your agreement has

been approved.

————————————————————————

What Is the Taxpayer Advocate Service?

• Use the Offer in Compromise Pre-Qualifier to see if

The Taxpayer Advocate Service (TAS) is an independent

organization within the Internal Revenue Service (IRS).

TAS helps taxpayers resolve problems with the IRS,

makes administrative and legislative recommendations to

prevent or correct the problems, and protects taxpayer

rights. We work to ensure that every taxpayer is treated

fairly and that you know and understand your rights under

the Taxpayer Bill of Rights. We are Your Voice at the IRS.

Filing an amended return. Go to IRS.gov/1040X for information and updates.

How Can TAS Help Me?

Checking the status of your amended return. Go to

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

TAS can help you resolve problems that you haven’t been

able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then

come to TAS. Our services are free.

you can settle your tax debt for less than the full

amount you owe. For more information on the Offer in

Compromise program, go to IRS.gov/OIC.

It can take up to 3 weeks from the date you filed

your amended return for it to show up in our sysCAUTION tem, and processing it can take up to 16 weeks.

!

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool. You may be able to use

the Document Upload Tool to respond digitally to eligible

IRS notices and letters by securely uploading required

documents online through IRS.gov. For more information,

go to IRS.gov/DUT.

Publication 587 (2025)

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS

problem is causing financial difficulty, if you’ve tried

and been unable to resolve your issue with the IRS, or

if you believe an IRS system, process, or procedure

just isn’t working as it should.

• To get help any time with general tax topics, visit

www.TaxpayerAdvocate.IRS.gov. The site can help

you with common tax issues and situations, such as

what to do if you make a mistake on your return or if

you get a notice from the IRS.

31

• TAS works to resolve large-scale (systemic) problems

What Are My Rights as a Taxpayer?

How Do I Contact TAS?

The Taxpayer Bill of Rights describes ten basic rights that

all taxpayers have when dealing with the IRS. Go to

www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights

for

more information about the rights, what they mean to you,

and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and

ensure the IRS is administering the tax law in a fair and

equitable way.

that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS. (Be sure not to include

any personal identifiable information.)

TAS has offices in every state, the District of Columbia,

and Puerto Rico. To find your local advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

32

Publication 587 (2025)

Publication 587 (2025)

33

Child’s Name

Tuesday

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Monday

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Wednesday

Week of _____________________________ Year______________

Name of Provider _______________________________

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Thursday

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Friday

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Saturday

Exhibit A. Family Daycare Provider Meal and Snack Log

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Hours of

attendance:

_____

Bkfst

Snack

Lunch

Snack

Dinner

Snack

Sunday

Number served:

_____

Breakfasts:

_____

Lunches:

_____

Dinners: _____

Snacks: _____

Number served:

_____

Breakfasts:

_____

Lunches:

_____

Dinners: _____

Snacks: _____

Number served:

_____

Breakfasts:

_____

Lunches:

_____

Dinners: _____

Snacks: _____

Number served:

_____

Breakfasts:

_____

Lunches:

_____

Dinners: ______

Snacks: ______

Totals

Keep For Your Records

Index

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

Adjusted basis 7

Business furniture and

equipment 16, 17

Adjusted basis defined 7

Fair market value 8

Administrative or management

Figuring depreciation for the current

activities 3

year 8

Assistance (See Tax help)

Home 7

Attorneys 5

Nonresidential real property 8

B

Percentage table for 39-year

nonresidential real property 8

Business expenses not for use of

Percentage

table for 5- and 7-year

home 19

property

17

Business furniture and

Permanent improvements 7, 9

equipment 16

Depreciation of home 7

Business percentage 9

Basis adjustment 15

Business use of the home

MACRS (Table 2) 8

requirements (See Qualifying for a

deduction)

Property bought for business

use 15

C

Sale or exchange of your home 15

Carryover of unallowed expenses 9 Doctors 5

Child and Adult Care Food Program

E

reimbursements 13

Exclusive use 2

D

Expenses:

Daycare facilities 12

Direct 6

Eligible children for standard meal

Indirect 6

and snack rates 14

Insurance 7

Exceptions for regular use

Related to tax-exempt income 6

requirement 12

Rent 7

Family daycare 14

Repairs 7

Meals 13, 14

Security system 7

Regular basis 12

Telephone 7

Standard meal and snack rates 13,

Unrelated 6

14

Utilities and services 7

Deduction limit 9

Where to deduct 18

Deduction requirements:

Exceptions to exclusive use 3

F

Exclusive use 2

Fair market value 8

More than one trade or business 5 Family daycare providers 14

Place to meet patients, clients, or

Meal and snack log (Exhibit A) 33

customers 5

Standard meal and snack rates 14

Principal place of business 3

Figuring

the deduction:

Regular use 3

Business

percentage 9

Separate structure 5

Deduction

limit 9

Storage of inventory or product

Form

2,

18

samples 3

1040, Schedule F:

Trade or business use 3

Worksheet 21

Deductions

4562

16

Figuring 6, 20

8829

6, 9, 13

Limit 9

Part-year use 6

H

Qualifying for 2-6

Home:

Unreimbursed partnership

Business percentage 9

expenses 19

Depreciation 7

Using Actual Expenses 6

Sale of 14

Dentists 5

Home expenses, Can you deduct

Depreciation 16

business use of, Figure A 4

5-year property 17

7-year property 17

A

34

I

Improvements (See Permanent

improvements)

Insurance 7

Inventory, storage of 3

L

Listed property:

Defined 16

Reporting and recordkeeping

requirements 16

Years following the year placed in

service 16

M

MACRS percentage table:

39-year nonresidential real

property 8

5- and 7-year property 17

Meals 13

Meeting with patients, clients, or

customers on premises 5

More than one place of

business 10

More than one trade or business 5

More-than-50%-use test 16

P

Partners 19

Partnership expenses,

unreimbursed 19

Permanent improvements 7, 9

Personal property converted to

business use 17

Place of business, more than

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