I moved mid year, including home office. I use simple method

[wenner]

I moved mid-year, including my home office, and i use simple method for deduction.  One office I lived at 5 months, the other 7.  Why is the business conducted in home limited to 100%?  Say home office 1 i work at 60% of the time when living at that house (40% visiting clients).  Say home office 2 same thing.  I work 60 % of time when living at that house.  TT wants the total time working at the different homes to be less than 100%.  What is wrong here?

funny thing is that TT is calculating the correct home office deduction, but it is giving me errors.

[Kat]

If you used the home office in each home 60% of the time, that would be the total usage of the home offices for the year.   Is that the way you're entering the information?   The total can't be over 100%, because that's all that you COULD have used the home offices. 

The Simplified Method for home office usage is capped at $1500. 

What is the error message you're receiving?

[wenner]

Thanks Kat for your help. 

I get 4 error messages in the Smartcheck.  The first 2 for office A and second 2 for office B.  Note this is for my spouse's home office, I don't have one. 

Schedule C - form 8829 (office A): Elect simple CY should not be elected for more than one copy of form 8829 for each business.  (I entered selection "elect simple meth CY - YES)

Schedule C - Form 8829 (office A): LN C of simple method wks.  The spouse has elected the simplified home office expense method and a total greater than the maximum allowed 300 square feet is entered on forms 8829 (I entered Limited square footage 275)

Same errors for Office B, I entered YES and 250 to the above for office B.

TT gives me a home office deduction of $802 for A (when we lived at this home for 7 months) and $521 for B (when we lived at this house for the other 5 months).  This total is less than the 1500 limit, and what I expected.  250 ft2 * 5 $/ft2 * (7 months/12 months) + 250*5*(5/12) = $1323.

Any idea what i am doing wrong?

THANKS!!!

[Kat · Accepted solution]

Here's what I've learned:

Using the Simplified Method for figuring your home office deduction is limited to only ONE home per tax year.  So if you use the Simplified Method for the first home, you can use the Regular method for figuring the second home.

I think these FAQs for the Simplified Method (from the IRS) may clarify how you need to proceed.

FAQs - Simplified Method for Home Office Deduction | Internal Revenue Service (irs.gov)

[wenner]

That did it!!!  Thanks so much for the help

[Kat]

@wenner My pleasure!