I am a 10% partner in an SCorp. Can I deduct my home office on my personal taxes in the premier turbo tax package?

[-philanthropy-]

My work is pro bono philanthropy, so I am not paid anything.  I have lots of expenses.  The 90% owner of the SCorp does the business taxes.

[bwa · Accepted solution]

Strictly based on the facts in your post, you cannot.  A home office deduction cannot exceed the net income from the activity.  If you have no net income, you have no home office deduction.  Also, there is no home office deduction for charitable contributions.

Do you receive your pro-rata share of the S-Corporation's profit or loss?  If so, is it a profit or a loss?

[-philanthropy-]

it will be a profit

[-philanthropy-]

I will get a K1 form

[bwa]

it will be a profit - I will get a K1 form

Then so long as you meet the regular and exclusive tests for your use of the office, and your employer requires you to have an office, you can deduct home office costs up to the amount of your income from that source.

Caution:  The IRS expects that shareholder's receiving income from an S-Corporation will receive wages equal to the value of their services.  Their concern is that distributions only is a way of avoiding social security taxes.

While you suggest your work is philanthropy, it would only be so if the entity is a non-profit entity organized under Sec. 501(c)(3) of the statute.  Non-profit entities file Forms 990, not Forms 1120-S.

Suggestion:  Have the majority shareholder meet with a tax professional as it sounds like he has some issues he needs to straighten out.