My spouse has filed the 1120S. Where do I put passthrough business use of home on my 1040?

[PatriciaV · Accepted solution]

Yes, you would report your Home Office Expenses as an Itemized Deduction on Schedule A.

Note: S corporation shareholders generally cannot deduct unreimbursed business expenses on Schedule E because the shareholders are categorized as employees when performing services for the corporation. These expenses, if not subject to reimbursement from the corporation, are unreimbursed employee business expenses treated as miscellaneous itemized deductions subject to the 2% of the adjusted gross income (AGI) floor (reported on Schedule A). When a corporate officer or controlling shareholder incurs unreimbursed business expenses, the IRS has ruled that they are deductible only by the corporation when they relate to corporate business rather than that of the officer or shareholder.

Instructions for entering this in TurboTax: Where do I enter the employee home office deduction?