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When calculating my business conducted in the home and I lived in one location for 3 months and another for 6 months?

Forum|Forum|7 years ago
June 4, 2019
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TurboTax Self Employed Online

Best answer by PatriciaV

Yes, when you have two home offices to report, the total business use cannot be over 100% (see screenshot below - click to enlarge)

In general, allocate the two offices based on the number of months you lived in each home. For example, if you moved at the start of September, one office would be 8/12 (67%) and the other would be 4/12 (33%).

If you conduct all your business from home, the business percentage is 100%. But if you conducted only 70% of your business at home (you also worked away from home), apply that percentage to the allocations above. House 1 = 0.70 x 0.67 = 46.9%; House 2 = 0.70 x 0.33 = 23.1%; Total = 70%.

PatriciaVAnswer

Employee

Yes, when you have two home offices to report, the total business use cannot be over 100% (see screenshot below - click to enlarge)

In general, allocate the two offices based on the number of months you lived in each home. For example, if you moved at the start of September, one office would be 8/12 (67%) and the other would be 4/12 (33%).

If you conduct all your business from home, the business percentage is 100%. But if you conducted only 70% of your business at home (you also worked away from home), apply that percentage to the allocations above. House 1 = 0.70 x 0.67 = 46.9%; House 2 = 0.70 x 0.33 = 23.1%; Total = 70%.

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D

drsben

Employee

I am moving from a home where I operate my business and have an office in my residence to a home that I will be renting. Can I continue conducting my business in a rental property, it is online I just need to know if I will be required to change the kinds of deductions if the house is rented and will I need additional licencing to continue working in a rental home. I am not in the business of renting properties. I am simply a small business moving from my own home to a rental home.

Critter

Employee

Follow the screen instructions carefully to enter one home office and then the other ... it will lead you perfectly if you simply read the screen instructions.

Carl11_2

Employee

First, you must close the old home office in the old house. Until you do that, dealing with the new home office in the new house should not even be on your radar yet.
Basically, start working through the old home office and select the option for "I stopped using this asset in 2018" and work it through completely.

Once you have closed the home office, what you do after that depends on a few things.

- Did you own the home this old home office was in, and if so did you sell it? Convert it to rental? Something else?

- Maybe you were renting the home and have moved because the lease ended?