DEFINITION of 'IRS Publication 587: Business Use of Your Home (Including Use by Day-Care Providers)'

A document published by the Internal Revenue Service (IRS) that provides information on how taxpayers who use their home for business purposes can calculate and claim deductions. IRS Publication 587 outlines the type of expenses that can be deducted, how to calculate the deductions, what to do if a home used for business purposes is sold, how to deduct furniture costs and what sort of records to keep.

BREAKING DOWN 'IRS Publication 587: Business Use of Your Home (Including Use by Day-Care Providers)'

Properties open to business use can include homes, apartments, condos and other living areas but does not include hotels or inns. In order to qualify for any deduction a portion of the property must be used exclusively for business purposes. Expenses such as mortgage interest or real estate taxes typically do not qualify.

RELATED TERMS
  1. IRS Publication 936

    A document published by the Internal Revenue Service (IRS) that ...
  2. IRS Publication 535 - Business ...

    A document published by the Internal Revenue Service (IRS) that ...
  3. Interest Deduction

    A deduction for taxpayers who pay certain types of interest. ...
  4. Above The Line Deduction

    Above the line deductions are certain types of deductions that ...
  5. IRS Publication 521 - Moving Expenses

    A document published by the Internal Revenue Service (IRS) outlining ...
  6. Schedule A

    Schedule A is a U.S. income tax form that is used by taxpayers ...
Related Articles
  1. Taxes

    How To Claim Home Office Expenses

    There are many factors to determine what home office deductions can be made towards your small business. Planning ensures high deductions.
  2. Taxes

    An Overview of Itemized Deductions

    President Trump may get rid itemized deductions.
  3. Taxes

    10 Tax Benefits for the Self-Employed

    Running your own business has both personal and financial perks.
  4. Taxes

    Want A Bigger Tax Refund? Don't Itemize

    Six reasons why many taxpayers can save money and time by claiming the standard deduction.
  5. Taxes

    How To Qualify For The Home-Office Tax Deduction

    Homebodies can save big on their tax bill. Learn how to get in on the action.
  6. Taxes

    Top Tax Deductions For Brokers

    If you are paying out of pocket, you can make your business expenses work for you at tax time.
  7. Taxes

    Why You Should Itemize Your Tax Deductions

    This strategy of moving your tax deductable payments and donations to the following year could mean hundreds more on your return.
  8. Taxes

    The Most Overlooked Tax Deductions

    The receipts you cram into your wallet could be replaced with cash come tax season.
  9. Taxes

    Do Your Research Before Claiming These Deductions

    Be sure to read the fine print about any deduction or credit that you’re planning to claim.
  10. Small Business

    Writing Off the Expenses of Starting Your Own Business

    Learn how to navigate the complicated rules for writing off the expenses of starting your own business. It could save you a lot of money.
RELATED FAQS
  1. How is the deductible I paid for my insurance claim treated for tax purposes?

    Find out how your health insurance deductible is treated for tax purposes and under what conditions you may be able to deduct ... Read Answer >>
  2. How do I know whether to itemize deductions or take the standard deduction?

    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
  3. What are the deductions taken to determine AGI (adjusted gross income)?

    Read more about the deductions taken to arrive at adjusted gross income, or AGI, including the differences between above ... Read Answer >>
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center