You would include the room in your rental house that is used for your business as a home office on the Schedule C that you file for the business.
Here are instructions to enter the home office expense if filing a Schedule C for your business.
- Open or continue your return.
- Search for Schedule C and select the Jump to link in the search results.
- Answer any questions about your business until you get to the Your self-employed work summary screen. Select Edit or Review next to your business.
- You might want to enter your 1099-MISC, 1099-K, cash, and personal check income from your self-employment before you associate any expenses with your business, but this is not required.
- You'll be asked What kind of expenses did you have for [type of work]? Select Home office. You can also select any other expense categories that apply to your business. Select Continue at the bottom of the screen when you're done.
- On the Here's your [type of work] info screen, scroll down to the Expenses section, and select Start next to Home office.
- Enter the info about your home office.
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