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

deduction. See Line 30 in the Instructions for Schedule C for more information.

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.

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

18 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 al- lowed 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 deduc- tion. 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

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 deduc- tion. 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.

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More information. For more information about partners and partnerships, see Pub. 541.