My wife has a dedicated home office from which she conducts portions of two Schedule C businesses. 95% of all activity for one business, and 50% of all activity for the other. Two questions regarding the input screen where expenses for the ENTIRE HOME are captured:
1) The mortgage interest total here is substantially lower than the actual total mortgage interest paid on the home - even after the adjustment for excess interest that's not deductible because it's from a HELOC which has a partial balance not associated with home improvements. The correct total amount of mortgage interest (after non-deductible amount) is shown in the main Federal Deductions screen, however. Why is this?
2) Instructions say to "split" the home office deductions across both Schedule C businesses. Does this mean that I should split all of the individual expense items (including data from Form 1098)? For example, if total homeowner insurance was $1,000 for the year, should I enter $500 in the home office expense section for each Schedule C?
