I have my home office in my multi-family rental building. The home office is used only for rental business.
I think there are 2 ways to deduct such a home office:
1. Start a Schedule C with zero income and file Form 8829 (Expense for business use of your home)
2. Figure out home office expense and list as a "Home Office Expense" on Schedule E Other Expenses section.
My home office expense according to Form 8829 is
(Schedule A Mortgage Interest + RE Taxes) x (Home office Square footage / Home Square footage)
I prefer option 2 b/c I don't have to add a pointless Schedule C.
How are you guys handling this?
