To enter the home office deduction as a member of an LLC that receives a K-1, follow these instructions:
You will need to calculate your home office expense. We recommend using a worksheet from IRS Publication 587 Business Use of Your Home to figure out your home office expenses.
First, choose only one of these to fill out:
-The Worksheet to Figure the Deduction for Business Use of Your Home is useful for tracking all expenses related to your home office.
-The Simplified Method Worksheet calculates your home office expenses using the size of your home office and a fixed deduction of $5 per square foot when your home office is 300 square feet or less.
Once you've figured out the amount, you can enter it on this screen along with "Business Use of Home" in the description field.
- Go to the Personal category.
- Go to the Personal Income subcategory.
- Choose the option "I'll choose what I work on".
- In the list "Your 2016 Income Summary", find the section labeled "Business Investment and Estate/Trust Income".
- Click start or update on the item Schedule K-1.
- Go into your Form 1065 K-1.
- Continue through most of your entry screens until you reach a screen labeled "Describe the Partnership" that has a list of items.
- On this list, check the box labeled "I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed" and hit continue.
- Continue until you reach the screen labeled "Miscellaneous Supplemental Expenses" and you will enter your vehicle expenses on this screen.
