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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13340
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am working with a client who has a partnership H/W, in the

Customer Question

I am working with a client who has a partnership H/W, in the state of Arkansas. a couple of questions.... Can they retain the LLC and be a qualified joint venture, seems I read that they can't have the limited liability status with a qualified joint venture.
They use part of their home to store equipment, exclusively, where does this Home deduction go, does it go on the partnership or the personal return?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
Hello,
You are correct. Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election.
The LLC would not allow them to claim as joint venture.
When the taxpayer is an employee or a partner, use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of publication 587. Then that is carried to the personal return.
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Customer: replied 1 year ago.
so it would end up being an itemized deduction, subject to 2%? I didn't think that a partner could be an employee of the partnership.
Expert:  Robin D. replied 1 year ago.
I stated employee too because they both (employee or partner) would do the same when claiming the deduction. Yes 2% limitation would apply.
Expert:  Robin D. replied 1 year ago.
Did you want the link to the IRS source?

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