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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

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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.