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Information about “HOME TAX OFFICE 1989”
LONG DESCRIPTION
If you have a home office, you'll find HOME OFFICE TAX 1989 especially
useful. Using simple data entry sheets, you can determine amount of
your Home Office tax deduction. Once computed, it can be attached to
your SCHEDULE 2106 [EMPLOYEE EXPENSE SHEET], or the amount can be
entered on your SCHEDULE C [SELF-EMPLOYED PERSON] tax form.
The data forms ask for such information as: Do you own your home or
rent? If owned, you'll enter mortgage information, interest, property
taxes paid, and other information. If rented, you'll enter the
monthly payments. In addition, you'll enter the utilities and other
maintenance costs. You'll also enter the total square footage of the
home and the amount of office square footage being used.
The beauty of the program is it will generate reports in far less time
than it takes you to gather the data for it.
HOME OFFICE TAX 1989 is simple, functional, and beneficial to those
looking for a program that determines the tax benefit of having and
maintaining an office in the home.
This is not a tax preparation program. It produces only this one set
of reports.
FILE2183.TXT
Disk No: 2183
Disk Title: Home Tax Office 1989
PC-SIG Version: S1
Program Title: Home Office Tax 1989
Author Version: 1989
Author Registration: $18.00
Special Requirements: None.
Those with an office in their home will find HOME OFFICE TAX 1989
useful. Through the use of simple data entry sheets, you can determine
amount of your Home Office tax deduction. Once computed, it can be
attached to your SCHEDULE 2106 [EMPLOYEE EXPENSE SHEET], or the amount
can be entered on your SCHEDULE C [SELF-EMPLOYED PERSON] tax form.
The data forms ask for such information as: Do you own your home or
rent? If owned, you will enter mortgage information, interest, property
taxes paid, and other information. If rented, you will enter the
monthly payments. In addition, you will enter the utilities and other
maintenance costs. You will also enter the total square footage of the
home and the amount of office square footage being used.
This information should be obtainable in a brief period of time. The
beauty of it is that the program will generate the reports in far less
time than it will take you to gather the data for it. It should be
mentioned that this is not a Tax Preparation Program. It produces only
this one set of reports.
Overall, the program is simple, functional, and will be beneficial to
those looking for a computer program to determine the tax benefit of
having and maintaining an office in the home.
PC-SIG
1030D East Duane Avenue
Sunnyvale Ca. 94086
(408) 730-9291
(c) Copyright 1989 PC-SIG, Inc.
GO.TXT
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║ <<<< Disk No 2183 HOME OFFICE TAX 1989 >>>> ║
╠═════════════════════════════════════════════════════════════════════════╣
║ To print the documentation, type: COPY MANUAL.DOC PRN (press enter) ║
║ ║
║ To start the program, type: HOT (press enter) ║
╚═════════════════════════════════════════════════════════════════════════╝
MANUAL.DOC
HOME OFFICE TAX (tm) 1989
Version 1989.0A
Shareware Version
Copyright (c) 1988, 1989
by ParyTech Associates
NOTE: This version is up to date on tax law changes through
Dec 1, 1989. If the IRS makes any changes, revised
versions of this program will be available on the
CompuServe forums and BBS's listed below, or an
updated shareware version may be obtained directly
from us for $8.00.
CompuServe forums:
WORK and IBMAPP
BBS's:
Data Exchange 612/441-7073
Twin Cities PC User Group 612/888-7570
Plymouth BBS 612/553-0150
ParyTech Associates
16559 Quincy St. NE
Ham Lake, MN 55304
(612) 434-4330
TABLE OF CONTENTS
SUBJECT PAGE
Copyright Notice .................................... 1
Trademarks .......................................... 1
Disclaimer of Warranty .............................. 1
License ............................................. 2
Registration and Ordering ........................... 3
Quantity and Corporate Purchases .................... 4
Shareware ........................................... 5
Introduction ........................................ 6
System Requirements ................................. 7
Installation ........................................ 8
Information Needed for Data Entry ................... 9
Your Name ...................................... 9
Social Security Number ......................... 9
Total Square Footage of Home ................... 9
Square Footage of Office Space ................. 9
Average Hours per Week You Provided Day Care ... 9
Number of Weeks You Provided Day Care .......... 9
Date Home Purchased ............................ 10
Straightline Depreciation ...................... 10
Straightline Years (if ACRS property) .......... 10
Cost/Basis of Home ............................. 10
Mortgage Interest Paid ......................... 10
Property Tax Paid .............................. 10
Rent ........................................... 10
House Insurance Paid ........................... 11
Gas Utilities Paid ............................. 11
Electric Utilities Paid ........................ 11
Other Utilities ................................ 11
Indirect Maintenance Costs ..................... 11
Business Expenses .............................. 11
Business Gross Profit .......................... 11
Casualty Losses ................................ 12
Indirect Expense Carry Forward from 1988 ....... 12
Depreciation Carry Forward from 1988 ........... 12
Schedule C or Form 2106 Filer .................. 12
In General .......................................... 13
(Table of Contents continued on next page)
Table of Contents (cont'd)
SUBJECT PAGE
Main Menu ........................................... 13
Print Reports .................................. 13
Data Entry ..................................... 13
Print Input Form ............................... 13
View Shareware Notice .......................... 13
Configure System ............................... 14
OS Shell ....................................... 14
Exit to DOS .................................... 14
Getting Out of a Work Area ..................... 14
Getting Help ................................... 14
File Names ..................................... 14
Depreciation Conventions Used ....................... 15
Calculation Methods ............................ 15
Periods Used ................................... 15
Conventions Used ............................... 15
Explanation of Worksheet ............................ 16
Registration Form ................................... 21
Home Office Tax 1989
COPYRIGHT NOTICE
HOME OFFICE TAX is copyrighted by Gary W. Lundgren DBA
ParyTech Associates.
No parts of HOME OFFICE TAX or the manual may be copied
in whole or in part except as provided in the License in the
following pages.
TRADEMARKS
HOME OFFICE TAX is Trademarked by Gary W. Lundgren DBA
ParyTech Associates.
Many product names found throughout this manual are
trademarks of various companies.
DISCLAIMER OF WARRANTY
THIS SOFTWARE AND MANUAL ARE SOLD "AS IS" AND WITHOUT
WARRANTIES AS TO PERFORMANCE OF MERCHANTABILITY OR ANY OTHER
WARRANTIES WHETHER EXPRESSED OR IMPLIED. BECAUSE OF THE
VARIOUS HARDWARE AND SOFTWARE ENVIRONMENTS INTO WHICH THIS
PROGRAM MAY BE PUT, NO WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE IS OFFERED.
GOOD DATA PROCESSING PROCEDURE DICTATES THAT ANY PROGRAM
BE THOROUGHLY TESTED WITH NON-CRITICAL DATA BEFORE RELYING ON
IT. THE USER MUST ASSUME THE ENTIRE RISK OF USING THE
PROGRAM. ANY LIABILITY OF THE SELLER WILL BE LIMITED
EXCLUSIVELY TO PRODUCT REPLACEMENT OR REFUND OF PURCHASE
PRICE.
Page 1
Home Office Tax 1989
LICENSE
HOME OFFICE TAX (tm) is copyright (c) 1988, 1989 by
Gary W. Lundgren DBA ParyTech Associates.
HOME OFFICE TAX is not, nor has ever been, public domain
or free software.
The commercial, registered version of HOME OFFICE TAX
may not be duplicated other than for backup purposes. A
registered copy of HOME OFFICE TAX must be treated like a
book, in that the same registered copy of HOME OFFICE TAX may
not be used in more than one computer at the same time, just
as a book may not be read by more than one person at the same
time.
Users are granted a limited license to use the User
Supported, trial version of HOME OFFICE TAX for a limited
evaluation period of up to 45 days, in order to determine if
it suits their needs. Any other use of HOME OFFICE TAX or
use past this period requires registration.
All users are granted a limited license to copy the User
Supported version of HOME OFFICE TAX only for the purpose of
allowing others to try it, subject to the above restrictions
as well as the following:
HOME OFFICE TAX must be distributed in absolutely
unmodified form, including ALL program, documentation,
and other files.
HOME OFFICE TAX may not be included with any other
product for any reason whatsoever without a license from
ParyTech Associates.
No charge or payment may be levied or accepted for HOME
OFFICE TAX.
Bulletin Board system operators may post the User
Supported version of HOME OFFICE TAX on their BBS for
downloading by their users, without written permission only
if the above conditions are met, and only if no special fee
is necessary to access the HOME OFFICE TAX files (a general
fee to access the BBS is OK).
Distributors of User Supported and Public Domain
software MUST obtain written permission from ParyTech
Associates before distributing HOME OFFICE TAX and must
follow the above conditions. Permission is almost always
granted. This requirement is necessary to ensure protection
for ourselves and HOME OFFICE TAX users from unscrupulous
individuals.
The following section contains information on
registration and licensing.
Page 2
Home Office Tax 1989
REGISTRATION AND ORDERING
Registering HOME OFFICE TAX allows you to use the
product after the trial period. Registered HOME OFFICE TAX
users get the current copy of HOME OFFICE TAX on disk along
with their own serial number, mailed notification of HOME
OFFICE TAX updates, and priority when calling for support.
Most importantly, registered users know they are helping to
make sure that high quality software like HOME OFFICE TAX
continues to be sold in this low cost manner.
HOME OFFICE TAX registration costs $18 in U.S. funds,
and includes a copy of HOME OFFICE TAX on disk. Check and
money orders are accepted but must be in U.S. funds drawn on
a U.S. bank. Corporate purchase orders are accepted also for
amounts in excess of $180 only.
An evaluation disk with the current copy of HOME OFFICE
TAX is available for $10 U.S. This is to be used to try out
HOME OFFICE TAX, and does not include registration. The fee
covers the cost of postage, diskettes, and handling.
To place an order, please use the order form at the end
of this documentation.
CORPORATIONS and INSTITUTIONS: please see the section titled
'Quantity and Corporate Purchases' for information on
licensing multiple copies of HOME OFFICE TAX. Under no
circumstances may an unregistered copy of HOME OFFICE TAX be
used in a corporate or institutional environment after the
trial period is over.
Page 3
Home Office Tax 1989
QUANTITY AND CORPORATE PURCHASES
Any commercial (business, corporate, government, or
other institutional) use of HOME OFFICE TAX must be
registered. Volume discounts and site licenses are
available.
The order form at the end of this documentation may be
used to purchase multiple copies of HOME OFFICE TAX with
discounts as follows:
1 to 10 copies no discount
11 to 20 copies 10% discount
21 to 50 copies 15% discount
51 to 100 copies 25% discount
101 + copies 40% discount
Purchases of up to 50 copies are bulk purchases and
include that many copies of HOME OFFICE TAX on disk as with
single registrations. Purchases of 51 or more copies are
site licenses. ParyTech Associates provides a master copy of
HOME OFFICE TAX and the appropriate number of diskette
labels. The licensee is responsible for copying the disks
(backups of the MASTER do not count towards the total copies
in the license).
The name on the order form is considered the contact and
is the person with whom all correspondence will take place.
NOTE: All prices and discounts are subject to change without
notice. Discounts only apply to separate orders and are not
cumulative.
Page 4
Home Office Tax 1989
SHAREWARE
Shareware is user supported software available to you on
a no risk trial basis. If the software meets your needs, you
are encouraged to contribute to the author to encourage that
author to continue to develop useful and needed software. By
contributing you become a registered user entitled to free
support (the call is on you, however), and future updates at
minimal cost. As a registered user you will receive a copy
of the program without the start up screen and you will
receive a registration number.
Home Office Tax was created and is supported by the
organization listed below. Users are encouraged to report
any problems and/or bugs by mail, phone, or thru CompuServe
(ID# 76407,607). Our address and phone number is listed
below. We will do our best to respond to your questions and
problems within 48 hours of receipt.
User supported software (shareware) means that users are
expected (encouraged) to contribute their opinions,
suggestions, and criticisms so that the software can evolve
into a truly useful utility. We absolutely believe in this.
Conceptions are fine, but the true product evolves from the
user's perceptions and needs.
Suggested Contribution for Home Office Tax is $18.00
Please use the registration form at the end of this
documentation and send your contributions to:
ParyTech Associates
16559 Quincy St. NE
Ham Lake, MN 55304
Phone: (612) 434-4330
Page 5
Home Office Tax 1989
INTRODUCTION
Home Office Tax is designed to take the drudgery and
headaches out of figuring home office expenses for tax
deductions by letting your computer do the hard work of
figuring the percentages and allowances.
In the past, the IRS has printed Publication 587
"Business Use of Your Home". While this publication is a
good effort on the part of the IRS, some people still have a
difficult time trying to decipher the instructions. In the
1987 publication there was an error in reference to the
amount of gross business income, and a non-existent line
number was referenced. This caused some errors on some tax
returns of the taxpayers who did not happen to catch these
instruction errors, which required amended returns to be
filed. Actually, it caused people to pay more tax than was
necessary. The IRS did correct this problem, altho a little
late for some people.
Home Office Tax uses a modified approach to the IRS
worksheet to present information more logically. You are
asked to enter information on your home office space and
expenses. Home Office Tax asks you for the basic raw data,
total amounts spent on various items, then computes your
business percentages and depreciation based on your home
office space footage. Home Office Tax then prints a report
detailing your deduction and limitations (if any), and carry
forward's of expenses (if any).
Hopefully this program will appear very simple in
nature. That was our purpose. Approximately 75% of the
program code involves depreciation calculations by the
computer that the user doesn't see going on. This program
will calculate all depreciation methods for real estate going
back to the 1940's.
This manual is brief. Hopefully we designed the program
for maximum ease of use so that detailed instructions will
not be required.
CHANGES SINCE THE 1988 VERSION:
* Use of pop up windows.
* Use of standard keys for exiting functions and
getting help. (ESC and F1)
* Context sensitive help.
* All data entry done in one screen that uses full
screen editing.
Page 6
Home Office Tax 1989
SYSTEM REQUIREMENTS
IBM PC, XT, AT, PS/2, or compatible with DOS 2.11 or higher.
256K memory
1 floppy drive or more, or a hard drive
Color Graphics Adaptor (CGA) or Hercules
If you have a Hercules graphics adaptor, execute the
file HOH.BAT to run the program.
Printer: IBM Graphics compatible is known to work, altho no
special printer control codes are used so it should
work with almost any printer that accepts standard
printer commands. Let us know if yours won't work.
Page 7
Home Office Tax 1989
INSTALLATION
Copy all the files to your working disk or hard drive.
You may make a sub-directory for your data files. Be sure to
define that directory in the Configure System selection from
the main menu. The sample files demonstrate the various
degrees of deductability with various profit margins.
All data files have the file extension ".OFF"
Page 8
Home Office Tax 1989
INFORMATION NEEDED
The following is a list of all the information you will need
to enter in this program. You will need to be able to
document this information (in the event of an audit). Make
sure you have receipts, statements, or cancelled checks !
YOUR NAME
Your first, middle initial, and last name.
SOCIAL SECURITY NUMBER
Your social security number.
TOTAL SQUARE FOOTAGE OF HOME
This is the total area of your home. You can measure it
a couple of ways. You can measure every room in the house
and compute the square footage of each room, then add all the
square footages to get a total for your home. Or the easy
way, take the outer dimensions of your home (e.g. 20 ft wide
by 40 ft long = 800 square ft. If you have a two level home,
multiple the 800 by 2).
SQUARE FOOTAGE OF OFFICE SPACE
Measure your office space to get a square footage.
If your space is not used exclusively for business (such as
providing daycare), you will need the average hours per week
and the number of weeks in the year that your home was used
for providing this service. Your square footage of office
space would also be the total area that is used in providing
this service. This applies only to those types of services
where exclusive use is not possible. Generally this applies
only to daycare services. Any other type of business
activity must use their office space exclusively for
business. If you have any question about how this applies to
your business, contact us or your local IRS office.
AVERAGE HOURS PER WEEK YOU PROVIDED DAY CARE
If you provided daycare you will need to figure out the
average hours each week that you provided day care.
NUMBER OF WEEKS YOU PROVIDED DAY CARE
If you provided daycare you will need to figure out how
many weeks in the year you provided daycare.
Page 9
Home Office Tax 1989
DATE HOME PURCHASED
This is the date you bought your home.
STRAIGHTLINE DEPRECIATION
If you have deducted depreciation on your home office in
previous years, you will need to know if you elected
straight line depreciation.
STRAIGHTLINE YEARS (if ACRS property)
If the date that you bought your home is between Jan 1,
1981 and Dec 31, 1986 (inclusive) then your home is ACRS
property for depreciation purposes. If you elected
straightline depreciation in the past, you will need to know
the number of years that you elected to use; 15, 18, 19, 35,
or 45 years.
COST/BASIS OF HOME
This is the cost of your home (your purchase price) or
your basis in your home (purchase price plus cost of
improvements). Cost or Basis is NOT based on market values.
It is based on what you paid.
DO NOT INCLUDE THE COST OF LAND. The cost of your land
should be stated on your purchase agreement or closing
papers. If not, check with your county assessor to find the
land value. Subtract the land value from your total purchase
price or basis.
MORTGAGE INTEREST PAID
This is the amount of interest you paid on your home
mortgage. Usually your mortgage company will send you a
statement at the end of the year stating this amount.
PROPERTY TAX PAID
This is the amount of property tax that was paid for the
year. This will usually be stated on the same statement as
your interest paid from your mortgage company, or you may get
this information from your local government agency (county
assessor), or your property tax statement.
RENT
If you do not own a home you can enter the amount of
rent you paid for the year. Do not enter any information
for; Date House Purchased, Mortgage Interest Paid, Property
Tax Paid, Cost/Basis of Home.
Page 10
Home Office Tax 1989
HOUSE INSURANCE PAID
This is the amount of property insurance premiums on
your home that you paid for the year. This may also be
stated on your statement from your mortgage company, on your
insurance policy, or in your check register.
GAS UTILITIES PAID
This is the amount of your heating bills paid for the
year. This could be natural gas, LP, oil, or cords of wood.
Hopefully, you've saved your bills from the year or can track
the checks paid in your check register. Or, you may be able
to get the amount from your utility company.
ELECTRIC UTILITIES PAID
This is the amount of your electric bills paid for the
year. As with the Gas Utilities, hopefully you have your
bills or can get the information from your utility company.
OTHER UTILITIES
This is the amount of other types of utilities that you
paid for the year such as; rubbish removal, sewer, water,
association fees (in condos or trailer parks), etc.
INDIRECT MAINTENANCE COSTS
This is the amount of maintenance costs you paid for the
year to maintain your home such as; exterior painting,
plumbing and heating maintenance and repairs, etc.
Painting or repair of rooms other than the home office
are not deductible. Any expenses directly related to the
home office are deductible directly as business expenses.
BUSINESS EXPENSES
This is the total amount of your business expenses
EXCLUDING Cost Of Sales (if you sell a product). All the
costs incurred in conducting your business, less the cost of
your products.
BUSINESS GROSS PROFIT
This is the amount of your business income AFTER
subtracting your Cost Of Sales (if you sell a product).
Page 11
Home Office Tax 1989
CASUALTY LOSSES
This is the amount of casualty losses you incur on your
home such as; fire damage, storm damage, vandalism, running
the car thru the garage, etc.
As per Code Sect 165 where a loss is sustained with
respect to property used partly for business purposes
(including profit making activities), the $100 and 10%
limitations apply only to that portion of the loss property
attributable to non-business use.
For example:
Your home office percentage is 15%. Your have storm
damage to your home of $10,000. You will be able to
deduct $1500.
This is of course calculated for you by the program.
What you need to enter is the gross amount of loss after
subtracting actual or expected insurance reimbursements.
NOTE:
When calculating your casualty loss on your schedule A,
you need to apply the limitations to the balance of the loss
($8,500 as in the above example, $10,000 - $1,500 = $8,500).
The $100 and 10% limitation would apply to the $8,500 when
you enter it on your schedule A.
INDIRECT EXPENSE CARRY FORWARD FROM 1988
This is the amount of any indirect expenses that you
could not deduct on your 1988 return, if any.
DEPRECIATION CARRY FORWARD FROM 1988
This is the amount of any depreciation that you could
not deduct on your 1988 return, if any.
SCHEDULE C, OR FORM 2106 FILER
You will need to determine if you are a Schedule C or
Form 2106 filer on your tax return. If you are self employed
you are a Schedule C filer. If you are an outside person for
a company and are required to maintain a home office, you are
a Form 2106 filer.
If you are a Form 2106 filer you must deduct your Home
Office tax deduction on your schedule A as a miscellaneous
itemized deduction which is subject to a 2% exclusion of your
adjusted groos income. You can not take the deduction on
your Form 2106. This may seem unfair, but it's the law.
Page 12
Home Office Tax 1989
IN GENERAL
This manual is brief. We assume that you understand the
rudiments of using a computer and DOS. We did not provide
for various file maintenance operations because they can
easily be handled with common DOS commands (copying,
deleting, renaming, etc).
MAIN MENU
When the program starts you are presented with the main
menu. You have these selections:
1. Print Reports
This takes you to another menu where you can select
to print the home office deduction worksheet,
instructions, and schedule to be attached to your
tax form, based on the information you have
entered.
2. Data Entry
This takes you to a screen where you can enter
information in regards to your name, SSN, home, and
office space. To move around the input screen you
can press the following keys:
PRESS THIS TO DO THIS
ENTER To move to the next input
Down Arrow field.
Tab
Shift-Tab To move to the previous input
Up Arrow field.
To get Help, press F1. To exit the input screen,
press ESC. When exiting you'll be asked if you
want to save the input.
3. Print Input Form
This allows you to print out a form for gathering
the various items of information you will need for
entering in item 2 above (Data Entry).
4. View Shareware Notice
This allows you to view the shareware notice again
for registration information.
Page 13
Home Office Tax 1989
5. Configure System
This allows you to set options so that the program
will run correctly on your computer. You can
select color or monochrome monitors, snow
suppression, file paths, and a printer pause.
6. OS Shell
This allows you to shell out of the program and
execute DOS commands, or execute other programs.
This leaves the program suspended while you perform
other functions. When you are ready to return to
the program, enter EXIT at the DOS prompt.
This shell will operate correctly as long as you do
not run another program that requires more memory
than is available with the Home Office Tax Program
loaded.
ESC Exit to DOS
This selection will ask you to confirm that you
want to exit the program and return to the
operating system. If you answer anything other
than "Y", you will be returned to the Main Menu.
GETTING OUT OF A WORK AREA
At several points in the program you are able to exit
the area you are working in by pressing "ESC" at any point
to return to the previous menu. Watch the status line at the
bottom of the screen to see various actions that can be
taken.
GETTING HELP
At several points in the program you can get help on the
subject that is being presented to you by pressing "F1". The
help is context sensitive. Watch the bottom of the screen to
see when help is available. "F1 Help" will be displayed.
FILE NAMES
If a file name has not been defined at any time during the
program, you will be asked for a file name. You do not need
to enter the file's extension. If the file does not exist,
you will be asked if you want to create it.
You may also select another file when at the Main Menu by
pressing "F2". You can then enter the file name or press
"F2" again to get a listing of the files in your file
Page 14
Home Office Tax 1989
directory. To select, move the highlight bar to the file you
want, then press ENTER.
DEPRECIATION CONVENTIONS USED
CALCULATION METHODS
Being that this is a computer generated depreciation
system, the best depreciation calculation is done by use of
percentage depreciation tables. These may vary by a few
pennies from other types of calculations, but are accurate
enough for tax purposes.
Any transitional property (placed in service between Jul
1, 1986 and Dec 31, 1986 electing MACRS) was not provided for
because it applies to property in progress of being
constructed, and I don't think very many people in the home
office position would gain anything by it. You probably
didn't even know about it anyway.
PERIODS USED
The periods used are the periods defined by law based on
the date you bought your home. Exceptions are where you have
elected straightline depreciation and elected different
periods.
CONVENTIONS USED
The conventions used are those defined by law based on
the date you bought your home. The present conventions used
are:
CLS Class Life System. Generally a straightline
depreciation over 40 years.
ADR Asset Depreciation Range. No real change from the
CLS convention for real estate.
ACRS Accelerated Cost Recovery System. Enacted by the
Tax Reform Act of 1980. This system incorporated
several methods based on the date your home was
purchased and defined various periods.
MACRS Modified Accelerated Cost Recovery System. Enacted
by the Tax Reform Act of 1986. This system
simplified ACRS and extended the periods of
depreciation.
No depreciation is computed for those of you who rent your
home or apartment. Instead, you get to deduct a portion of
the rent you paid. The program will figure that for you.
Page 15
Home Office Tax 1989
EXPLANATION OF WORKSHEET
---- USAGE BASIS ----
AREA BASIS
Line 1: Area used for business.
This is the square footage of your office space that
you entered in the Compute Office Space function.
Line 2: Total area of home.
This is the total square footage of your home that
you entered in the Compute Office Space function.
Line 3: Percentage of home used for business.
This is the percentage of your home office space
based on area.
If a time usage basis is not used, the message
"TOTAL PERCENTAGE OF HOME USED FOR BUSINESS X.XXXX %"
will be printed next.
TIME USAGE BASIS
Line 4: Hours facility used.
This is the average number of hours your home was
used that you entered in the Compute Office Space
function. If you did not enter information on time
usage, this area on the worksheet will say that the
time usage basis was not used.
If a time usage basis is not used, the message
"Time Usage Basis Not Used"
will be printed next, and lines 5 thru 7 will not be printed.
Line 5: Total hours available.
This is the total hours available in the year which
is 24 hrs X 365 days, equals 8,736 hours.
Page 16
Home Office Tax 1989
Line 6: Percentage of time used for business.
This is the percentage of the usage hours to total
hours available in the year.
Line 7: Percentage of home usage for business.
This is the percentage of your home usage for
business based on the space and hours used.
If the time usage basis is used, the message
"TOTAL PERCENTAGE OF HOME USED FOR BUSINESS X.XXXX %"
will be printed next.
---- EXPENSES ----
line 8: Business percentage of otherwise deductible
expenses.
These are expenses are that are deductible on your
schedule A anyway. However, by taking these as a
home office deduction you may avoid exclusions on
some of these expenses. These expenses may be
deducted even if you have a loss.
These expenses are listed in two columns; TOTAL
EXPENSE, and BUSINESS PART. The business part is
the total expense multiplied by the PERCENTAGE OF
HOME USED FOR BUSINESS listed above.
When you enter these deductions on your schedule A,
you should list the amount of TOTAL EXPENSE minus
the BUSINESS PART. This is a favorite part for the
IRS to audit because people forget to subtract the
business part when they list the expense on schedule
A.
a) Mortgage Interest.
This is the amount of mortgage interest that you
entered in the Input Expenses area.
b) Property Taxes.
This is the amount of property tax that you
entered in the Input Expense area.
Page 17
Home Office Tax 1989
c) Casualty Losses.
This is the amount of casualty losses that you
entered in the Input Expenses area.
d) Totals.
This is the total of each column.
Line 9: Business Expenses.
This is the amount of business expenses that you
entered in the Input Expenses area. This should be
the amount of all business expenses excluding any
costs of sales.
Line 10: Indirect Expenses for Business Use of Home.
These expenses are deductible only to the extent to
which you have a profit from your business and after
deducting the amount from line 8d.
a) Electric Utilities.
This is the amount of electric utilities that you
entered in the Input Expenses area.
b) Gas Utilities.
This is the amount of gas utilities that you
entered in the Input Expense area.
c) Other Utilities.
This is the amount of other utilities that you
entered in the Input Expenses area.
d) Insurance.
This is the amount of home insurance that you
entered in the Input Expenses area.
e) Maintenance.
This is the amount of indirect maintenance that
you entered in the Input Expenses area.
f) Rent.
This is the amount of rent (if any) that you
entered in the Input Expenses area.
Page 18
Home Office Tax 1989
g) Carry Forward from 1987.
This is the amount of carry forward from 1987
that you entered in the Input Expenses area.
h) Totals
This is the total of the columns.
Line 11: Depreciation
This is the amount of depreciation calculated for
your property based on the Basis and purchase date
of your home that you entered in the Input Expenses
area. On the next line the convention used will be
stated.
This deduction is limited to the amount of profit
from your business after deducting the indirect
expenses above and the amount of line 8d. The
reason that depreciation is the last deductible item
is because it is considered a phantom expense. It
doesn't require a cash outlay in the year.
Generally, whether you have a home office or not,
you will have depreciation anyway, (or more
appropriately, for most real estate, appreciation).
Carry Forward from 1987.
This is the amount of carry forward from 1987 that
you entered in the Input Expenses area.
Total
This is the total of the depreciation for this year
plus any carry forward.
---- DEDUCTION LIMITATION ----
This area calculates the amount of your home office deduction
taking into account any limitations as explained as above for
indirect expenses and depreciation.
Page 19
Home Office Tax 1989
Page 2
---- CARRY FORWARD'S TO 1989 ----
If you are not able to deduct all your expenses for 1988,
this area will tell you what expenses are to be carried
forward to 1989.
---- WHERE TO DEDUCT ----
This area will tell you where to correctly deduct you various
home office expenses on your tax returns to effect the best
tax savings.
Page 3
This page should be attached to your income tax return as per
the instructions on page 2 (above).
HOME OFFICE TAX 1989 REGISTRATION FORM
Page 20
Home Office Tax 1989
Name: ______________________________________________________
Company: ___________________________________________________
Address: ___________________________________________________
City, State, Zip: __________________________________________
Country: ___________________________________________________
************************************************************
Computer Make and & Model: __________________________________
Memory: ________________ Disk (5-1/4 or 3-1/2): ___________
Monitor Type: ____________________ Printer: _______________
Graphics Adaptor Type: _____________________________________
Where did you obtain a copy of this program ?: ______________
_____________________________________________________________
*************************************************************
Quantity: ______ X $18 = __________
Less Quantity Discount (see page 5) ______ % - __________
Minnesota residents add 6% sales tax + __________
TOTAL = __________
**** Upgrades for previous registered users ****
Your serial number: _________________
Upgrade fee is $10
MAIL TO:
ParyTech Associates
16559 Quincy St. NE
Ham Lake, MN 55304
Phone (612) 434-4330
Page 21
README.DOC
HOME OFFICE TAX 1989
README.DOC
If you have a Hercules graphics adapter, execute the
file HOH.BAT to run the program.
Print out the file MANUAL.DOC for the instruction
manual. At the DOS prompt enter "copy manual.doc prn". Be
sure that you have continuous feed paper in your printer, or
something that will feed sheets.
Files included with the HOME OFFICE program:
ACRS.OVL Depreciation tables
ACRS2.OVL "
ACRS3.OVL "
ACRS4.OVL "
ACRSSL.OVL "
ACRSSL2.OVL "
ACRSSL3.OVL "
ACRSSL4.OVL "
ACRSSL5.OVL "
ACRSSL6.OVL "
ACRSSL7.OVL "
ACRSSL8.OVL "
ACRSSL9.OVL "
ACRSSL10.OVL "
MACRS.OVL "
BRUN45.EXE Runtime module
HERC.COM Hercules graphics adapter driver
HOT.CFG Program configuration file
HOT.EXE Main program
HOTE.OVL Data entry module
MAIN.MNU Screen image file
MANUAL.DOC Manual on how to use this program
README.DOC This file you are reading now
SAMPLE1.OFF Sample file
SAMPLE2.OFF "
SAMPLE3.OFF "
SAMPLE4.OFF "
SAMPLE5.OFF "
SAMPLE6.OFF "
With the exception of HERC.COM, HOT.EXE is the only
executable file.
End of README.DOC
Directory of PC-SIG Library Disk #2183
Volume in drive A has no label
Directory of A:\
ACRS OVL 599 11-20-88 4:02a
ACRS2 OVL 688 11-20-88 4:02a
ACRS3 OVL 690 11-20-88 4:02a
ACRS4 OVL 1172 11-20-88 4:02a
ACRSSL OVL 576 11-20-88 4:02a
ACRSSL10 OVL 2746 11-20-88 4:04a
ACRSSL2 OVL 687 11-20-88 4:02a
ACRSSL3 OVL 687 11-20-88 4:02a
ACRSSL4 OVL 1188 11-20-88 4:03a
ACRSSL5 OVL 1296 11-20-88 4:03a
ACRSSL6 OVL 1302 11-20-88 4:03a
ACRSSL7 OVL 2150 11-20-88 4:03a
ACRSSL8 OVL 2745 11-20-88 4:04a
ACRSSL9 OVL 2746 11-20-88 4:04a
BRUN45 EXE 77440 9-28-88 1:43a
HERC COM 6749 9-28-88 2:03a
HOH BAT 17 10-02-89 9:18a
HOT CFG 17 11-20-89 10:31p
HOT EXE 86934 12-28-89 9:09p
HOTE OVL 65014 12-23-89 10:28a
MACRS OVL 2404 11-20-88 4:05a
MAIN MNU 4000 12-26-89 9:39p
MANUAL DOC 47041 12-28-89 8:46p
README DOC 2097 11-23-89 1:06a
SAMPLE1 OFF 139 12-23-89 9:33a
SAMPLE2 OFF 139 12-23-89 9:39a
SAMPLE3 OFF 139 12-23-89 9:43a
SAMPLE4 OFF 139 12-23-89 9:47a
SAMPLE5 OFF 139 12-23-89 9:55a
SAMPLE6 OFF 139 12-23-89 10:37a
GO BAT 38 10-19-87 3:56p
GO TXT 540 4-30-90 11:50p
FILE2183 TXT 2739 5-01-90 5:46p
33 file(s) 315136 bytes
27648 bytes free