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.

24 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.