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I run two different home based businesses. One of them is being landlord and property manager to my rental properties. How do I deduct home office use as landlord

I can deduct home as part of my home based business, but I don't know how to deduct home office for my rentals

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Cindy0H
New Member

I run two different home based businesses. One of them is being landlord and property manager to my rental properties. How do I deduct home office use as landlord

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) or a farm/ranch (Schedule F). There is no place on Schedule E for a home office.

https://www.irs.gov/pub/irs-pdf/f1040se.pdf

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1 Reply
Cindy0H
New Member

I run two different home based businesses. One of them is being landlord and property manager to my rental properties. How do I deduct home office use as landlord

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) or a farm/ranch (Schedule F). There is no place on Schedule E for a home office.

https://www.irs.gov/pub/irs-pdf/f1040se.pdf

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