 mortgage interest, real estate taxes, if they were directly applied to the office, which would be a little bit more unusual, you know, on those two items. Casualty losses, insurance for the office itself, miscellaneous, rent for just the office. That would be a little bit unusual. Repairs and maintenance, it's likely that you might be able to do repairs and maintenance just on the office maybe. So maybe I fixed something in the office for like $300. I don't have to allocate that between personal and business because I repaired my home, but it was to the office itself. Utilities, if you were able to somehow figure the utilities or break them out to have it just for the office portion without using the indirect method, but usually you would have to use the indirect method, excess mortgage, excess real estate taxes, casualty losses. So let's keep it at that. And let's start there. Let's see what we get. So then I'm going to pull this on over and let's just check out what it populated here for the form. So part one, part of your home used for business. So we've got the 300 area used regularly and exclusively for business. And then the total area of the home we're saying was the 1200. If I pull out the trustee calculator, there's the trustee calculators to come to save the day. 300 divided by 12,000 is 0.25%. So then we're going to say, all right, that's going to be our ratio. It's a little low on the ratio, but we'll say that's going to be it. So then we've got the 2.5%. And then the amount of the schedule C, so it's going to pull this over from the schedule C because it's trying to see if there's going to be a limitation. And then up top, we've got the casualty losses, deductible mortgage interest, and the real estate taxes. But we're focused down here on these items. We have the direct expenses and the indirect expenses. So for the direct expenses, the ones that we can apply directly to the office itself, we put that $300 in for the repairs and maintenance that we imagined on the office. The rent, however, indirect, same with the repairs and maintenance for the roof of the home we imagined and the utilities for the whole home, that comes up to the 21,900. And so then we have multiply 23 column B by line, by line seven, which is our percent, which would make sense. So the indirect items are the 21,900 times the 0.025. That gives us our 548 about. So that 548 is the portion of the indirect items. And then we're going to add that plus the 300, the 300. And because that's the direct that we get, and that comes about to 848, that flows into the schedule C. Notice it's not in the normal kind of deductions up top, but rather down below down here. And that's going to be then populate into the 9915, 152, which ultimately, of course, pulls over to the form 1040 here. So that's the general idea of it. Now, if you own the home, it becomes a little bit more complex because then you've got the mortgage interest and possibly depreciation that you have to deal with. So just to give you an idea of why that's a little bit more complex, it's because I'm not going to have the rent here. The rest might be somewhat the same. But then I've got like the mortgage interest. So let's say the mortgage interest was, I'm going to pick a high, you know, fairly 20,000 to try to also think about what would happen on the schedule A. And then I'm going to say that the real estate taxes, let's say we're 7,000. So now when I pull that over, notice what's happened here. I'm on the form 8,829. And I've got that populated up top here. So now it's in this area where I've got the 20,000 and the 7,000 adding to the 27,000. But then I have this little worksheet, which is telling me the allocation between the schedule A and the form 8,829. Why did that come into play? Remember before when I went to the form 1040, we were taking the standard deduction as opposed to the itemized deductions. The things that usually kick people over to take in the itemized deduction is owned in a home because you're possibly most likely have a loan on that. And the mortgage interest could be deductible as an itemized deductions as well as the property taxes. So if I go to the schedule A now, what it did is it basically populated now into this area for the taxes that were paid. And so now we've got the state local real estate taxes are being allocated here. It's using an allocation method to allocate here. And then we've got the interest, which is being allocated here. Now that gets quite confusing when you do the data input, because if you were to try to look at this and say, well, where did this data input come from? You would be jumping to the schedule A. You'd be going, all right, where's my itemized deductions? And I would be going into the schedule A and say, where's my interest over here? And there's nothing in the data input field for the interest. Why? Because we put it over here in the form 8829 so it can properly allocate the interest to the schedule A and the home business use in accordance with the ratio. So that gets messy. Also note that again, if you did hit the limits for the amount of mortgage interest that you can deduct because of the loan thresholds, that could complicate things, although that's a little bit unusual. But what's more common is that if your income goes above the $10,000 threshold, which is typically deductible on the taxes over here for the state taxes, that can complicate things a little bit as well. But in any case, you get the idea that you would think that you would have to basically allocate between the schedule A and the form 8829. If you're taking a schedule A deduction, if you're not taking the schedule A deduction, then maybe that's not as applicable because you're not going to be itemizing. So if you're still under and taking the standard deduction, then you'd be in a similar kind of situation as the rent. Okay. So in that case, we see that that is calculation, that calculation is up top, taking place here instead of basically down here. But everything else is somewhat similar. The allocation, as you can see, is if I took the 20,000 of interest, for example, 20,000 of interest times the 0.025, that's where we're getting the 500 that's being allocated to the 8829. And then the 20,000 of interest minus that 500. The 500 is where the rest is getting allocated to the schedule A of the 1,900, which we just saw on the schedule A, similar kind of thing for the property taxes, we would expect. All right. So the other thing that gets confusing if you own the home is that what you don't get on the schedule A, remember that the schedule A, by the way, is weird for these taxes. So the taxes and the interest, why do I get to deduct this interest? It's on a personal thing. If I wasn't using it for business, that's a weird thing to have. So it kind of muddies our thinking of what deductions kind of normally are. But usually you wouldn't get a deduction for the home because the home is for personal use. So if we bought the home as an office, if we bought an office building, in other words, we would be able to depreciate the cost of the office building. So then you would think, well, I should be able to depreciate the portion of my home that I'm using as an office. So that's the other thing that kind of muddies things up. Now the other thing that kind of muddies things up with depreciation is that it'll also possibly adjust your cost or basis in the home. So when you sell the home, it'll make that could make that more complicated because it could lower your basis, result in a higher gain and that gets another thing that could get a little confusing. But let's put the home on the books and depreciate it. Okay, so if you're putting the depreciable home on the books, you've got to be careful in terms of what's going to be the cost of the home because you might have your business that started after. So now you got to think about what the basis basically of the home is and that kind of stuff and make sure that you've got the method of depreciation correct and that kind of thing. But let's just get the general concept here because the general idea would be that we put the depreciation on the books. Now we have a depreciation schedule. It's the basis I said was 300,000 in the home, 2.5 business in accordance with the ratio that we used. So that means the depreciation is basis is going to be 7,500 and then it's using the straight line mid month 27.5. I'm going to get to the 261 which now pulls into our expenses for business use. And so now that's going to be added here at the 261.