If Schedule K-1 came from Form 1120S, S corporation shareholders generally cannot deduct unreimbursed business expenses with Schedule K-1 because the shareholders are categorized as employees when performing services for the corporation (and a corporate officer may be considered a statutory employee).
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.
In this case, enter the home office expenses under Deductions & Credits >> Employment Expenses >> Job-Related Expenses.
As an alternative-
If you are an employee of your own one-man corporation, whether a regular "C" corporation or a "sub-chapter S" corporation, you have several choices for handling the costs of a qualifying home office:
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You can deduct the costs of a home office if you are filing a Schedule C. Under the Tax Cuts and Jobs Act (TCJA), employees working remotely can no longer deduct home office expenses on their tax returns to the extent they exceeded 2% of adjusted gross income (AGI). Business owners may qualify to claim the home office deduction if they have their own business and use a portion of their home as their principle place of business.
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The S corporation can pay you rent for the home office.
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The S corporation can pay you for the costs of a home office under an "accountable" plan for employee business expense reimbursement.
see https://proconnect.intuit.com/articles/home-office-deductions-expenses/
