[jIM_Ohio]

Originally Posted by sweeps

Fill out the worksheet on page 25. http://www.irs.gov/pub/irs-pdf/p587.pdf

can anyone decipher this portion of the pdf for me?

Gross income from business . . . . . . . . . . . . . . . . . . . . . $6,000
and real estate taxes (20%) . . . . . . . . . . . . . . . . . . . . 3,000
Business expenses not related to the use of your home (100%)
(business phone, supplies, and depreciation on equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Deduction limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000
Minus other expenses allocable to business use of home:
Maintenance, insurance, and utilities (20%) . . . . . . . . . . 800
Depreciation allowed (20% = $1,600 allowable, but
subject to balance of deduction limit) . . . . . . . . . . . . . . 200
Other expenses up to the deduction limit . . . . . . . . . . . . . $1,000
Depreciation carryover to 2008 ($1,600 − $200) (subject to deduction limit in 2008) . . . . . . . . . . . . . . . . . . . . . . . $1,400