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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 577
Experience:  10 years experience
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I need to figure out whether I should take the simplified

Customer Question

I need to figure out whether I should take the simplified home office deduction or the standard can anyone help me thru this?
Submitted: 1 month ago.
Category: Tax
Expert:  ABC Accounting Group replied 1 month ago.

Hi. Great Question. I can help you. What are your expenses? Thanks.

Customer: replied 1 month ago.
100k
Customer: replied 1 month ago.
That includes depreciation
Expert:  ABC Accounting Group replied 1 month ago.

Thank you. Do you have a separate area in your home for a home office? Do you have a Schedule C you fill out?

Customer: replied 1 month ago.
no
Customer: replied 1 month ago.
I have a rental property and chapter s corps that work from there
Expert:  ABC Accounting Group replied 1 month ago.

If you are working the S-Corp from your home, you could take part of the expense on your S-Corp return, which lowers your liability. Is your rental property separate from your S-Corp. What is the line of business for the S-Corp.

Customer: replied 1 month ago.
Rental property separate
Expert:  ABC Accounting Group replied 1 month ago.

If you have items from the home office for the rental property - such as a computer, etc., I would take that off/depreciate, on your Schedule E.

If you are using the home office for your S-Corp, as well - I would take a portion of those expenses, which would go directly on your S-Corp return.

It would only be a portion of your home - so, the difference between your total property taxes, for instance, and the property tax you apportion to your home office, would be placed on your itemized deductions, Schedule A.

Expert:  ABC Accounting Group replied 1 month ago.

Let me know if you have any questions.