topic How to report home office expenses for a QBI real estate enterprise? in Deductions & credits

How to report home office expenses for a QBI real estate enterprise?

suncowiam — Sat, 20 Mar 2021 17:00:08 GMT

I have a collection of rental properties that I qualify for QBI.

My wife and I work from home. We manage all our properties. How then do I report the expenses of our primary home utilities, phone costs, office use and so on that normally applies to a business.

Do I report the expenses in one of my rental properties in Schedule E?

Thanks

Re: How to report home office expenses for a QBI real estate enterprise?

MaryM428 — Sun, 21 Mar 2021 02:19:48 GMT

Normally home office is reported on Form 8829 which is created with the Schedule C for self-employed business.

Since you will not be using that form, you will want to create documentation of the different home office expenses outside of TurboTax and keep that document with your tax records.

You can then enter the total of the home office expenses as one line in Other Expenses on one of your rental properties.

Here is a IRS publication that has a worksheet for use in a situation such as a rental office.

Business Use of Your Home

@suncowiam

[edited 3/20/2021 | 7:18 pm PST]

Re: How to report home office expenses for a QBI real estate enterprise?

suncowiam — Mon, 22 Mar 2021 16:10:27 GMT

For the following in form 8829:

Enter the amount from Schedule C, line 29, plus any gain derived from the business use of your home,
minus any loss from the trade or business not derived from the business use of your home. See instructions.

What do I enter if I I'm going with Schedule E for my rental properties?

Re: How to report home office expenses for a QBI real estate enterprise?

ThomasM125 — Fri, 26 Mar 2021 02:31:56 GMT

Line 24 on schedule E would be analogous with line 29 on a schedule C, as it would be the net income from your rental activity.