Where to take Home Office Deduction for Partnership

Discussion in 'Tax' started by DaveR, Feb 19, 2004.

  1. DaveR

    DaveR Guest

    I am a member of an LLC taxed as a partnership. My home
    office qualifies as a deduction.

    Where would this deduction be claimed? Is it on the Form
    1065 filed by the LLC? Or is it on my personal form 1040? If
    the latter, where do I claim it? The K-1 income goes to
    Schedule E but I do not see how to take a home office
    deduction there.

    Thanks in advance...

    --
    Dave

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    DaveR, Feb 19, 2004
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  2. DaveR

    Rob Nyberg Guest

    DaveR <NOSPAM_drubin@NOSPAM_i-2000.com> wrote:

    > I am a member of an LLC taxed as a partnership. My home
    > office qualifies as a deduction.
    >
    > Where would this deduction be claimed? Is it on the Form
    > 1065 filed by the LLC? Or is it on my personal form 1040? If
    > the latter, where do I claim it? The K-1 income goes to
    > Schedule E but I do not see how to take a home office
    > deduction there.


    Employees deduct business use of home expense on Form 8829
    and Schedule A, subject to the 2% AGI limitation.

    General partner's unreimbursed expenses are deducted on Sch.
    E, line 28, on the next line following the net income/loss
    amount. Use Form 8829 (IRS Publication 587) to arrive at
    the result to enter on Sch. E. Also, Form 2106 may apply to
    your situation, to claim deductions for vehicle, travel,
    transportation, meals, or entertainment expense.

    Best,
    Rob Nyberg, (Unenrolled tax return preparer)

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    Rob Nyberg, Feb 22, 2004
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  3. DaveR

    Milt Baker Guest

    (Rob Nyberg) wrote:
    > DaveR <NOSPAM_drubin@NOSPAM_i-2000.com> wrote:


    >> I am a member of an LLC taxed as a partnership. My home
    >> office qualifies as a deduction.
    >>
    >> Where would this deduction be claimed? Is it on the Form
    >> 1065 filed by the LLC? Or is it on my personal form 1040? If
    >> the latter, where do I claim it? The K-1 income goes to
    >> Schedule E but I do not see how to take a home office
    >> deduction there.


    > Employees deduct business use of home expense on Form 8829
    > and Schedule A, subject to the 2% AGI limitation.
    >
    > General partner's unreimbursed expenses are deducted on Sch.
    > E, line 28, on the next line following the net income/loss
    > amount. Use Form 8829 (IRS Publication 587) to arrive at
    > the result to enter on Sch. E. Also, Form 2106 may apply to
    > your situation, to claim deductions for vehicle, travel,
    > transportation, meals, or entertainment expense.


    IRS GENERAL INSTRUCTIONS FOR FORM 8829:

    Note: If you are claiming expenses for business use of your
    home as an employee or a partner, or you are claiming these
    expenses on Schedule F (Form 1040), do not use Form 8829.
    Instead complete the worksheet in Pub 587, Business Use Of
    Your Home (includes use by Daycare Providers)

    http://www.irs.gov/pub/irs-pdf/p587.pdf

    Milt Baker CPA Michigan

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    Milt Baker, Feb 23, 2004
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  4. DaveR

    DaveR Guest

    (Rob Nyberg) wrote:

    > General partner's unreimbursed expenses are deducted on Sch.
    > E, line 28, on the next line following the net income/loss
    > amount. Use Form 8829 (IRS Publication 587) to arrive at
    > the result to enter on Sch. E. Also, Form 2106 may apply to
    > your situation, to claim deductions for vehicle, travel,
    > transportation, meals, or entertainment expense.


    Last year my accountant asked me to itemize these expenses
    and he took them on Form 1065, treated as a loan from me to
    the partnership. This year I did some more research and I
    wonder if that is the proper approach...

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    DaveR, Feb 24, 2004
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  5. DaveR

    Rob Nyberg Guest

    To correct my errors:

    >> Employees deduct business use of home expense on Form 8829
    >> and Schedule A, subject to the 2% AGI limitation.


    I was wrong. Employees use the worksheet and Form 2106, not
    Form 8829.

    >> General partner's unreimbursed expenses are deducted on Sch.
    >> E, line 28, on the next line following the net income/loss
    >> amount.


    This is correct.

    >> Use Form 8829 (IRS Publication 587) to arrive at
    >> the result to enter on Sch. E.


    No, use the worksheet on p. 24 of Pub 587 to arrive at the
    result. You will find they are very similar, but the
    worksheet is proper.

    Thank you Milt Baker, CPA for correcting me.

    Rob Nyberg (Unenrolled tax return preparer)

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    Rob Nyberg, Feb 24, 2004
    #5
  6. "DaveR" <NOSPAM_drubin@NOSPAM_i-2000.com> wrote:
    > (Rob Nyberg) wrote:


    >> General partner's unreimbursed expenses are deducted on Sch.
    >> E, line 28, on the next line following the net income/loss
    >> amount. Use Form 8829 (IRS Publication 587) to arrive at
    >> the result to enter on Sch. E. Also, Form 2106 may apply to
    >> your situation, to claim deductions for vehicle, travel,
    >> transportation, meals, or entertainment expense.


    > Last year my accountant asked me to itemize these expenses
    > and he took them on Form 1065, treated as a loan from me to
    > the partnership. This year I did some more research and I
    > wonder if that is the proper approach...


    Depending on some other issues, like who else was involved
    in the partnership, I have done this - HOWEVER, I would not
    treat it as a loan, but rather as a contribution of capital
    to the partnership.

    Gene E. Utterback, EA

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    Gene E. Utterback, EA, Feb 25, 2004
    #6
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