Home Office Deduction, Partial Year Rent
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Home Office Deduction, Partial Year Rent

Hello, for a home business (area strictly used for business), we were renting an apartment for part of the year and can calculate the square footage and prorate the amount of rent expense strictly related for business use. For the remaining part of the year, we will be purchasing a house and paying mortgage. Could I deduct the pro-rated renting expense and also take the simplified version of the home office deduction ($5/ sq ft, up to 300 sq ft)?
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Home Office Deduction, Partial Year Rent

You may choose to use either the simplified method or the regular method for any taxable year.

Once you have chosen a method for a taxable year, you cannot later change to the other method for that same year.

Two home office in same tax year at different locations:

business (which is what you need to do, since you moved and had a home office in each home, which isn't uncommon).Go to the Home Office section - click on the Business Info tab, then select Business Income and Expenses. Click through the program, hopefully the summary appears pretty quickly. Select the Home Office button.

TurboTax will ask you to Enter a Percentage (you'll tell the program how much of your income you earned in that home office - for example, if you were in your 1st home office for 6 months of the year, and earn your income fairly evenly through the year, you would say "50%" of your income was earned in this home office).

TurboTax will next ask you to Allocate Your Business Expenses. you would do the same thing you did for your income, but instead of entering a percentage, you'll enter a dollar amount. To continue the above example, say you $10,000 in expenses and incurred the expenses somewhat evenly throughout the year, you'd enter $5,000 as the amount of expenses to allocate to this home office.

Do this for both home offices for this business. , you'll also enter 50% for your income percentage earned for this business, and $5,000 as the amount of expenses to allocate to this home office.

Thanks to  turbotax pro M_kate [2009]for the howto

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