Discussion:Home office for rental properties
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Discussion Forum Index --> Basic Tax Questions --> Home office for rental properties
Discussion Forum Index --> Tax Questions --> Home office for rental properties
| 4 April 2009 | |
| I've researched this with no results -- Is a home office deduction allowed for the administration of rental properties? The space is used exclusively and regulary for such activities. If so, where on Schedule E is this reported? Thanks. | |
| 5 April 2009 | |
| GSJ, I think the home office deduction for rentals is justified as long as the home office meets the requirements of Sec. 280A(c)(1). In situations where the home office deduction is allowable and there are multiple rental properties, I have created one additional "property" on Sch. E into which I put the home office deduction, vehicle use and any other deductions than benefit all rentals. Then I allocate the total out to the individual properties so that the common expense property has a zero balance.
One interesting but unfortunate result on one return was that the adjusted gross income was over $150,000 thereby eliminating the $25,000 special allowance for residential rentals. One of the properties was later sold, one that had never had a profit. So the taxpayer never got any benefit from that property's share of the home office deduction. (BTW, your profile is nice. Too bad your folks didn't give you a name to go with it.) | |
| 6 April 2009 | |
| Why wouldn't the home office be investment expense and thus be reported on Schedule A? | |
| 7 April 2009 | |
| Gsjcpa...I just did one but am not at that computer. I'll check it out and get back to ya!
TTMM- because the expenses are more limited???? taxea | |
| 7 April 2009 | |
| Gsjcpa...open Sch E then open Forms, Select Forms, Select 8829 when you double click on it a window will open select create new and type in Sch E Home Office. Then another window will open asking if you want to create a sch c...just hit enter...the program will create a sch c "untitled" and the 8829 will open with the title Sch C Sch E Home Office. taxea | |
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