topic BUSINESS CONDUCTED IN HOME OFFICE in Business & farm

BUSINESS CONDUCTED IN HOME OFFICE

50GJL — Thu, 19 Mar 2020 00:52:01 GMT

I STARTED A BUSINESS IN 11/19. I WORK 15 DAYS A MONTH IN THE OFFICE. WHAT % OF BUSINESS DO I CLAIM 2 MO OUT OF 12, OR 100% FOR THE 2 MONTHS? WHEN THE PROGRAM DOES ITS CALCULATIONS IT SEEMS LIKE A LARGE DEDUCTION.

DO I ALSO PRORATE THE MORTGAGE AND INTEREST ON THE HOUSE FOR 2 MONTHS ALSO, OR PUT IT IN FOR THE FULL YEAR AND THE PROGRAM FIGURES IT OUT?

Re: BUSINESS CONDUCTED IN HOME OFFICE

MarilynG1 — Thu, 19 Mar 2020 01:33:21 GMT

You claim that 100% of the Income Earned from your Business was earned from your Home Office.

Enter the Mortgage Interest and Property Tax for the full year in the Home Office section. TurboTax calculates the % that belongs to your Home Office.

Click this link for more info on the home office.

Re: BUSINESS CONDUCTED IN HOME OFFICE

LudwigVan_fan — Thu, 19 Mar 2020 01:34:39 GMT

Here is a link to Publication 587, Business Use of Your Home. I think you need to read this, it will provide information as to how to prorate the business portion.

Also, you have to enter the prorated numbers, TT won't do the calculations on rent, utilities, etc.

https://www.irs.gov/publications/p587