Question About Single Member LLC With Two Home Offices

[XrayDoc88]

I'd like to understand how TurboTax handles multiple home office deductions with a single LLC.  I entered the full year home expenses for two home offices separately with slightly different square footages for each office.  The program asked me to estimate my percentage use of each office.  I entered 60% and 40%.  To calculate my allowed combined home office deduction for my federal return does it work like this?  Home Office 1 size/Home 1 size x Home 1 Expenses x .6 plus Home Office 2 size/Home 2 size x Home 2 Expenses x .4 = Total Deduction?

Thanks!

[pk]

@XrayDoc88  generally sounds  correct, without knowing what you are referring to as expenses .

What are you trying get at ?

[XrayDoc88]

The expenses are the typical home office expenses that get prorated based on the size of your home office relative to total home size; i.e. utilities, home insurance, HOA fees, property taxes, yard maintenance, etc.

[XrayDoc88]

Can anyone confirm if my proposed calculation above is correct?  I have not seen in TurboTax how home office expenses are actually combined for two homes.  Does TurboTax consider the amount of time spent in each office (as above) or just add together the full year expenses for each location?  Thanks again.

[PatriciaV · Accepted solution]

The percentage of your business that is conducted in each Home Office is a factor in the allocation of expenses shared with your home. Also, this percentage is used to determine the portion of your business profit that is allocated to each home office since this deduction cannot create a business loss.

Rather than attempt to recreate the allocations, you can view Form 8829 for each office to see the actual calculations using Forms Mode in TurboTax for Desktop.

[XrayDoc88]

Thank you.  I didn't know about those specific forms.  It does look like total income generated by the two offices is split 60/40 and then the relevant deductions for each office are subtracted separately.