Tax Form 8829 Help

If you first use your home for business in the following month..	Then enter the following percentage on line 40
January	2.461%
February	2.247%
March	2.033%
April	1.819%
May	1.605%
June	1.391%
July	1.177%
August	0.963%
September	0.749%
October	0.535%
November	0.321%
December	0.107%

If you first used your home for business..	Then the percentage to enter on line 40 is..
After May 12, 1993 and before 2006 (exception below)	2.564%

The depreciation allowable (line 41) is calculated by multiplying the business basis of your building (line 39) by the depreciation percentage (line 40). This amount is entered on line 41 and on line 30 of Part II of Schedule C.

Carryover of Unallowed Expenses to next year: Form 8829 - Part IV

If the deduction of the business use of home is greater than your net income, you ay be able to apply the excess of unused portion of the deduction to a future year(s). This applies not only to unused operating expenses but also to unused or excess casualty losses and depreciation. You report this carryover of unallowed expenses to the next tax year on Part IV of Form 8829 on lines 41 and 42.