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Level 2
posted Jun 4, 2019 1:29:22 PM

Home office deduction for LLC members (of a multi-members LLC)

Where can LLC members (of a multi-members LLC) take a deduction for home office ? I do not have a schedule C, but a schedule E and SE. Please let me know on which schedules they should appear, and where to enter them in turbo tax. Many thanks!!

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1 Best answer
New Member
Jun 4, 2019 1:29:28 PM

To enter the home office deduction as a member of an LLC that receives a K-1, follow these instructions:

You will need to calculate your home office expense. We recommend using a worksheet from IRS Publication 587 Business Use of Your Home to figure out your home office expenses.

First, choose only one of these to fill out:

-The Worksheet to Figure the Deduction for Business Use of Your Home is useful for tracking all expenses related to your home office.

-The Simplified Method Worksheet calculates your home office expenses using the size of your home office and a fixed deduction of $5 per square foot when your home office is 300 square feet or less.

Once you've figured out the amount, you can enter it on this screen along with "Business Use of Home" in the description field.

  1. Go to the Personal category.
  2. Go to the Personal Income subcategory.
  3. Choose the option "I'll choose what I work on".
  4. In the list "Your 2016 Income Summary", find the section labeled "Business Investment and Estate/Trust Income".
  5. Click start or update on the item Schedule K-1.
  6. Go into your Form 1065 K-1.
  7. Continue through most of your entry screens until you reach a screen labeled "Describe the Partnership" that has a list of items.
  8. On this list, check the box labeled "I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed" and hit continue.
  9. Continue until you reach the screen labeled "Miscellaneous Supplemental Expenses" and you will enter your vehicle expenses on this screen.

2 Replies
New Member
Jun 4, 2019 1:29:28 PM

To enter the home office deduction as a member of an LLC that receives a K-1, follow these instructions:

You will need to calculate your home office expense. We recommend using a worksheet from IRS Publication 587 Business Use of Your Home to figure out your home office expenses.

First, choose only one of these to fill out:

-The Worksheet to Figure the Deduction for Business Use of Your Home is useful for tracking all expenses related to your home office.

-The Simplified Method Worksheet calculates your home office expenses using the size of your home office and a fixed deduction of $5 per square foot when your home office is 300 square feet or less.

Once you've figured out the amount, you can enter it on this screen along with "Business Use of Home" in the description field.

  1. Go to the Personal category.
  2. Go to the Personal Income subcategory.
  3. Choose the option "I'll choose what I work on".
  4. In the list "Your 2016 Income Summary", find the section labeled "Business Investment and Estate/Trust Income".
  5. Click start or update on the item Schedule K-1.
  6. Go into your Form 1065 K-1.
  7. Continue through most of your entry screens until you reach a screen labeled "Describe the Partnership" that has a list of items.
  8. On this list, check the box labeled "I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed" and hit continue.
  9. Continue until you reach the screen labeled "Miscellaneous Supplemental Expenses" and you will enter your vehicle expenses on this screen.

New Member
Jun 4, 2019 1:29:28 PM

I am employed by an employer (Company A) and I also established my own multi-member LLC last year in Texas. I need to file my personal taxes along with my business taxes.

For my personal taxes, I would like to add my home office usage for multi-member LLC. My multi-member LLC is mainly run by me, and my partnership agreement requires to use of my home office (we do not have any other physical place to work). I am trying to use the "Worksheet to Figure the Deduction for Business Use of Your Home" (Simplified Method) [p. 26] of Publication 587. We did not have any income from our multi-member LLC last year but I have income from my original employer (Company A). I am not sure what should I use in Line 1 of Simplified Method (Enter the amount of the gross income limitation). As I said, I have income from company A (for example 80K) and zero from multi-member LLC which I used my home office for it. My office space is around 200 sqf.