If you're self-employed and qualify for a

home office deduction, the details will be reported here.

Part I will help you determine the appropriate percentage of rent, utilities, etc., you can deduct because of your home office.

In Part II, you'll find two columns, labeled

direct expenses

and

indirect expenses

. Direct expenses are those specifically for the office space. Remodeling the office is a direct expense. Rent, mortgage and utilities are indirect because they affect the whole living space, not just the office.