When I enter the home office under a business expense it is saying unallowable because I did not make any profit (incorrect as the profit shows $30,000+). Seems like the link between my rental properties and the home office are not connected.
Unfortunately, income from
Schedule E does not qualify for the home office deduction, as the IRS
considers rental property income as passive.
For this reason, there is no Home Office section for Schedule E in TurboTax. If you entered your home office information under the Business tab, you must also report Business Income for Schedule C. In some cases, rental activity does qualify as Schedule C activity (for real estate professionals). In this case, you would be able to take the Home Office Deduction.
To qualify for a home office deduction you must have a trade or business (Schedule C), a farm/ranch (Schedule F), or be an employee who is required by the employer to maintain a office in their home.
Unfortunately, income from
Schedule E does not qualify for the home office deduction, as the IRS
considers rental property income as passive.
For this reason, there is no Home Office section for Schedule E in TurboTax. If you entered your home office information under the Business tab, you must also report Business Income for Schedule C. In some cases, rental activity does qualify as Schedule C activity (for real estate professionals). In this case, you would be able to take the Home Office Deduction.
To qualify for a home office deduction you must have a trade or business (Schedule C), a farm/ranch (Schedule F), or be an employee who is required by the employer to maintain a office in their home.