Deductions & credits

First , does your partnership agreement require you to pay office expenses out of your own pocket? 

• If yes, you will need to calculate the expenses and enter them into TurboTax.
  
• If no, you won't be able to take a deduction for office expenses.

You can use one of the worksheets in Publication 587 - Business Use of Your Home:

www.irs.gov/pub/irs-pdf/p587.pdf

• Worksheet to Figure the Deduction for Business Use of Your Home, [p.23]
• Worksheet to Figure the Deduction for Business Use of Your Home (Simplified Method) [p. 26]

After you have calculated the expenses for your home office you can go through the Schedule K-1 entry. 

To enter the K-1 and the related home office expenses, please follow these steps:

1. Click on Federal Taxes > Wages & Income
2. In the Business Items section click on the box next to Schedules K-1, Q.  [Screenshot #1, below.]
3. Click Yes on the next screen, Schedules K-1 or Q?
4. On the Tell Us About Your Schedules K-1 screen.  Click on the Start/Update box next to Partnerships/LLCs (Form 1065).   [Screenshot #2]
5. If you have already entered K-1 information, you will see a Summary screen.  Click Add Another K-1 to enter your information  (or click on Edit to continue with the existing form entry).  [Screenshot #3]
6. If you haven't started entering K-1 information, continue through the screens, entering the requested information.
7. When you come to the screen, Describe the Partnership, select the box  I am required to pay supplemental business expenses . . .   [Screenshot #4]
8. On the Unreimbursed Partnership Expenses screen, click the blue Yes box.
9. When you get to the Miscellaneous Supplemental Expenses screen, enter the allowable expenses for the business use of your home from the worksheet you used.   [Screenshot #5]