Real estate tax deduction - Home office

[Mikemuck]

I have an LLC business and so I get paid via a K1, so I don't have a schedule C.   For my home office, I know I can take a percentage of the real estate property tax.   How / where does that deduction link up with the person deduction for the real estate tax (it needs to subtract the about, so I'm not double dipping).

[JulieS · Accepted solution]

When your business income is reported on a K-1 form, the only way to take a home office expense is as an Unreimbursed Partnership Expense (UPE) on Schedule E.

Unlike the self-employed home office, the property taxes are not automatically divided between personal and business use. So you will need to figure your allowed amount to include in UPE and you will need to reduce your personal deduction by the same amount. 

Click here for more instructions on entering UPE in TurboTax.

[Mikemuck]

Thank.  Yes, I figured that out.  Only issue is you have to override the real-estate tax on Schedule A and TT doesn't like the override.  I was able to enter the business amount on the Tax and Interest worksheet on line 2f (as a negative number)  Then filled in 8829 to support it.   This then resulted in the net correct number for the personal deduction.   Would have not gone through the trouble, but I'm over the $10,000 so the real estate tax deduction on Schedule A isn't much help. By having a percentage of it as a business expense, I save a few hundred bucks.