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.
For more from the IRS, see: S Corporation Employees, Sharholders and Corporate Officers
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