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. _____

If you used your home for more than one business, you will need to file a separate Schedule C for each business. Don’t combine your deductions for each business use on a single Schedule C.

Business use of more than one home.

You may have used more than one home in your business. If you used more than one home for the same business during 2025, you may elect to use the simplified method for only one home; you must file a Form 8829 to claim a business use of the home deduction for any additional home. If one or more of the homes were not used for the entire year (for example, you moved during the year), see Part-year use or area changes (for simplified method only) , later, and Columns (a) and (b) in the Instructions for Form 8829.

Other requirements must still be met.

You must still meet all the use requirements to claim a deduction for business use of the home. The simplified method is only an alternative to the calculation, allocation, and substantiation of actual expenses. The simplified method is not an alternative to the exclusivity and other tests that must be met in order to qualify for this deduction. For more information about qualifying business uses, see Qualifying for a Deduction in Pub. 587 .

Gross income limitation.

The amount of your deduction is still limited to the gross income derived from qualified business use of the home reduced by the business deductions that are not related to your use of the home. If this limitation reduces the amount of your deduction, you can’t carry over the difference to another tax year.

Carryover of actual expenses from Form 8829.

If you used Form 8829 in a prior year and you had actual expenses that you could carry over to the next year, you can’t claim those expenses if you are using the simplified method. Instead, the actual expenses from Form 8829 that were not allowed will be carried over to the next year that you use actual expenses to figure your deduction.

Carryover of actual expenses for Form 1040-SS filers.

If you filed Form 1040-SS in a prior year and used a worksheet in Pub. 587 to figure your actual expenses that you could carry over to the next year, you can’t claim those expenses if you are using the simplified method. Instead, the amount of your Operating expenses and Excess casualty losses and depreciation from your worksheet in Pub. 587 that were not allowed will be carried over to the next year that you use actual expenses to figure your deduction. The next time you claim actual expenses, you need to file Form 8829.

Depreciation of home.

You can’t deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of your home that is used in a qualified business use if you figure the deduction for the business use of your home using the simplified method. The depreciation deduction allowable for that portion of the home for that year is deemed to be zero.

Although you can’t deduct any depreciation or section 179 expense for the portion of your home that is a qualified business use because you elect to use the simplified method, you may still claim depreciation or the section 179 expense deduction on other assets (for example, furniture and equipment) used in the qualified business use of your home.

Figuring your allowable expenses for business use of the home.

You will figure the deduction using Form 8829 or the Simplified Method Worksheet or both.

You may not use the simplified method and also file Form 8829 for the same qualified business use of the same home.

Using Form 8829.

Use Form 8829 to figure and claim this deduction for a home if you are not using or cannot use the simplified method for that home. For information about claiming this deduction using Form 8829, see the Instructions for Form 8829 and Pub. 587 .

Using the simplified method.

Use the Simplified Method Worksheet in these instructions to figure your deduction for a qualified business use of your home if you are electing to use the simplified method for that home.

Shared use (for simplified method only).

If you share your home with someone else who uses the home for a separate 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.