Solved

Home office Deduction for an LLC partnership using Turbotax premium and Turbotax Business

Forum|Forum|3 years ago
January 29, 2023
1 reply
0 views

Hello. I am a small business LLC partnership (my wife and I) using a home office 100% . I am using Turbotax Business (1065) for the LLC, and turbotax premium for my 1040. I found that the home office deduction has to be calculated in Turbotax Premium, not Turbotax Business. That said, I went through entering the information, which appears to be redundant - as I already have it in Turbotax business. The issue I am concerned with is entering the Gross sales AGAIN which increases taxes due - and feels like this is a duplicate of what I did in Turbotax Business. Keep in mind I generate K1s for myself and my wife.

The question is: How do I (in detail) claim my home office in my 1040 side (Turbotax). Do I just leave the gross sales "0", and keep going. It' s asking for my EIC, and type of business.

I want to avoid any "triggers" by the IRS by confusing reports of my business on a 1065 and 1040 --- in other words, avoiding duplication in my tax filing that generates questions.

Thanks in advance for any help/guidance..

-WB

Best answer by RobertB4444

You have made a number of errors here and I'm going to do my best to help you untangle them but if you have already filed any of these tax returns you need to consult a tax professional in order to work this all out.

First, your LLC is not entitled to a home office deduction. That deduction is reserved for self-employed sole-proprietorships and contractors. That's why you aren't able to deduct it using TurboTax Business.

Second, when you are entering information about your business into TurboTax Premiere you are duplicating your business and essentially doubling your entries. Delete all of the business entries that you have made into TurboTax Premiere.

If you have a second business where you are earning money on the side then you can enter that business into TurboTax Premiere and take a home-office deduction against that business. If the only business that you have is the LLC for which you are filing a 1065 then you are not entitled to a home-office deduction and you may not take it.

@bblyth

R

RobertB4444Answer

You have made a number of errors here and I'm going to do my best to help you untangle them but if you have already filed any of these tax returns you need to consult a tax professional in order to work this all out.

First, your LLC is not entitled to a home office deduction. That deduction is reserved for self-employed sole-proprietorships and contractors. That's why you aren't able to deduct it using TurboTax Business.

Second, when you are entering information about your business into TurboTax Premiere you are duplicating your business and essentially doubling your entries. Delete all of the business entries that you have made into TurboTax Premiere.

If you have a second business where you are earning money on the side then you can enter that business into TurboTax Premiere and take a home-office deduction against that business. If the only business that you have is the LLC for which you are filing a 1065 then you are not entitled to a home-office deduction and you may not take it.

@bblyth

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

B

bblythAuthor

Thank you for the clarification. Your first statement about the home office deduction makes complete sense now.. Luckily, I have not yet filed any taxes.. there are a few forms not approved I am waiting on through the updates...

Thank you again for your guidance..!

-Bill