Also, unless tax laws have changed (and I don't think that have for this) home office expenses are not even allowed on the SCH E. There's no category for it, and it's not addressed in any of the IRS documents related to residential rental real estate. Now you'll hear the argument that a real estate professional can claim HO expenses, and that's true. But a real estate professional is most likely reporting earned income on SCH C where HO expenses are allowed. Remember, rental income is passive (SCH E) and not earned.
