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June 1, 2019
Question

Home office deduction for partnership

  • June 1, 2019
  • 2 replies
  • 0 views

I have successfully entered my K-1 information for my husband's business (50% partnership), but can not figure out where to enter his home office deductions.  Is that deduction not available?  Or do I have the wrong version of TurboTax to enter that kind of information?  Or can I enter it manually directly on a tax form?

2 replies

Employee
June 1, 2019

Yes, this is easily done.

First, does your partnership agreement require you to pay office expenses out of your own pocket? If yes, you will need to calculate the expenses and enter them into TurboTax. If not, you won't be able to take a deduction for office expenses.

You will have to use one of the attached worksheets to figure the actual home office deduction. Either use your detailed expenses on the Worksheet to Figure the Deduction for Business Use of Your Home, or the simplified office square footage method (basically $5 per square foot of office, max of 300 sf up to ) on the Worksheet to Figure the Deduction for Business Use of Your Home (Simplified Method).

After you have filled out one of these worksheets, go through the Schedule K-1 questions for your partnership.
On the screen titled Describe the Partnership, select the box for I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed. (see screenshot below)

When you get to the Miscellaneous Supplemental Expenses screen,

  • Enter the allowable expenses for the business use of your home from the worksheet you used into the amount field.
  • Enter Business Use of Home in the description field.

Note: The amount of the deduction computed using the simplified method cannot exceed the gross income derived from the qualified business use of the home for the taxable year, reduced by the business deductions that are unrelated to the qualified business use of the home.

ref: IRS Publication 587 Business Use of Your Home



April 10, 2022

Trying to figure Business Use of Home for a Partnership using Form 8829.  On line 8 it asks for the amount from Schedule C...but my partnership uses a k-1/schedule E.  Is there a different form for Partnerships?  If not, what number would I use on line 8?  The profit before business use of home on my Schedule E?  Please help

AmyC
Employee
April 11, 2022

If your partnership agreement requires you spend money out of pocket, it can be deducted while you are entering the associated K-1 form.

 

Follow these steps:

  1. Enter your partnership K-1 information in TurboTax. 
  2. As you go through the screens entering your information, you will eventually come to a screen entitled Describe Your Partnership
  3. Be sure to check the box "I am required to pay supplemental business expenses...." 
  4. You will be prompted to enter your expenses once this is done.

See:

@mannaforyou

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