Sole Prop. LLC with home office, co-own home with Domestic Partner

[Janet_21]

Hello,

I own a sole proprietor LLC and work full-time from my home, which I co-own with my domestic partner who works outside of our home full time.   We file separately (single) and each claim 50% of what is on our 1098 (e.g. the mortgage interest, outstanding mortgage principal,  etc.).  We also split all of our utilities.  

When calculating home office expenses, The software distinguishes between "spouse" and "housemate", indicating that I should subtract living space used by a "housemate" but not a "spouse".  What do I do in the case of a domestic partner who shares all the non-office space with me? 

Also, when calculating household expenses, do I include all expenses as if he's my "spouse", or 1/2 the expenses as if he's my "housemate"?   

It doesn't seem consistent if he is designated as a "spouse" when calculating % of office space, and a "housemate" when calculating household expenses.  

Thank you

[PatriciaV · Accepted solution]

The distinction is only for household expenses. If you share the home with an unrelated third party who pays a portion of the household expenses, you would consider that person to be a "housemate." But if you share the household expenses with a domestic partner (spouse), you would not reduce your household expenses as you would for a housemate.