I run a B&B out of my house. How do I deduct for depreciation of the portion of my home that is dedicated to the B&B. How can I deduct for cost of food and other supplies

[ka1ci]

I am using Turbo Tax Home & Business. I have a home office that I run one business (IT consulting) out of.  The B&B is a separate business and guests use 1 bedroom and an adjoining bathroom exclusively. They also have unrestricted access to the Living room, dining room and kitchen, should they wish.

[MiriamF]

When you run a B&B, you have a business, not a rental.

All of the information gets entered on Schedule C. The rental portion of the house can be deducted as a "home office" on Form 8829.

Expenses for food, utilities such as water, sewer and garbage service (which are not part of Form 8829), and other supplies are listed as Other expenses on your list of Schedule C expenses. Any portion of utilities that you include on Schedule C will have to be prorated based upon the percentage of space that you are using for your B&B.

What makes this a business rather than a rental is that you are providing services - meals, housekeeping, etc. If you were not providing these services, it would be a rental.

Many places that rent but do not provide services also provide food in the room for the customers to eat. If this is your situation, this would count as a rental rather than a business, and the food would be listed under "Supplies."