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rokkett
New Member

Home Office Deduction

I moved part way through the year and Turbo Tax is counting my property taxes for both houses for my home office(s), effectively (and incorrectly) doubling the entered amounts.  I have to leave all mortgage loans in the list, even though they each apply to only one of the offices.  How can associate the lender information (and thus the payments made) to be associated with the correct home office.

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Accepted Solutions
MichaelDC
New Member

Home Office Deduction

This is a common occurrence. If you have any other details regarding this question, please feel free to post them in the comment section. You'll have two offices that you will allocate the income and expenses to:

1.      Open your return.
 (To do this, sign in to TurboTax and select the blue Take me to my return button.)

2.      Type “Schedule C” in the Search box and select the "Jump to" link in the search results.

3.      Go to Business Income and Expenses

4.      Profit or Loss from Business, click Start or Update

5.      Select the Home Office button. (See the attached screenshot below. Click to enlarge.)

Continue through answering that you had two home offices and follow the interview. (See the attached screenshot below. Click to enlarge.)

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. Once you complete your 1st home office, you'll be given the option to enter another home office. Again, to continue our example, in TurboTax for the 2nd home office, 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.

As usual, ensure that there isn't a mortgage/property tax entry in the Personal Deduction section. TurboTax flows from the home office to there automatically.

View solution in original post

1 Reply
MichaelDC
New Member

Home Office Deduction

This is a common occurrence. If you have any other details regarding this question, please feel free to post them in the comment section. You'll have two offices that you will allocate the income and expenses to:

1.      Open your return.
 (To do this, sign in to TurboTax and select the blue Take me to my return button.)

2.      Type “Schedule C” in the Search box and select the "Jump to" link in the search results.

3.      Go to Business Income and Expenses

4.      Profit or Loss from Business, click Start or Update

5.      Select the Home Office button. (See the attached screenshot below. Click to enlarge.)

Continue through answering that you had two home offices and follow the interview. (See the attached screenshot below. Click to enlarge.)

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. Once you complete your 1st home office, you'll be given the option to enter another home office. Again, to continue our example, in TurboTax for the 2nd home office, 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.

As usual, ensure that there isn't a mortgage/property tax entry in the Personal Deduction section. TurboTax flows from the home office to there automatically.

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