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Level 3
posted Jun 3, 2019 1:50:50 PM

Can we use the simplified method for home office expenses this year, if we've used the Actual Expense method in prior years?

Just wondering if we must stick to the same choice every year, or we can switch method every year depending on what makes more sense?

Also, when reporting this expense as an unreimbursed partner expense, there is just a number filed to populate. Do we need to somehow indicate which method we have used? I don't see how. Do we need to somehow attach the respective worksheet, or just keeping it in our records is fine?

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1 Best answer
Expert Alumni
Jun 3, 2019 1:50:52 PM

Can the simplified method be used for one taxable year and the standard method be used in a later taxable year?

A.  Yes.  You may elect to use either the simplified method or the standard method for any taxable year.  However, once you have elected a method for a taxable year, you cannot later change to the other method for that same year.\

https://www.irs.gov/businesses/small-businesses-self-employed/faqs-simplified-method-for-home-office...

Please see TurboTax Pro Patricia's response to a similar question: https://ttlc.intuit.com/replies/6688187

2 Replies
Expert Alumni
Jun 3, 2019 1:50:52 PM

Can the simplified method be used for one taxable year and the standard method be used in a later taxable year?

A.  Yes.  You may elect to use either the simplified method or the standard method for any taxable year.  However, once you have elected a method for a taxable year, you cannot later change to the other method for that same year.\

https://www.irs.gov/businesses/small-businesses-self-employed/faqs-simplified-method-for-home-office...

Please see TurboTax Pro Patricia's response to a similar question: https://ttlc.intuit.com/replies/6688187

Level 3
Jun 3, 2019 1:50:53 PM

Thanks! What if there is no written partnership agreement at all?