Solved: On a 1040 return with a K-1 from an S Corp I need to offset home office depreciation against the S Corp income. Can you help me with this.

mm2 · ‎12-07-2019

IRonMaN · ‎12-07-2019

I don't think anybody can. A sub S isn't like an partnership where you can adjust the earnings with business expenses paid by the partner.

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TaxGuyBill · ‎12-07-2019

As a side note, if the shareholder took money out of the corporation I'm hoping there is a W-2 also.

mm2 · ‎12-07-2019

Yes, he did get a W-2. He is a doctor who does not have an office other than in his home, I've put everything in Lacerte to take the deduction but it does not pull through to offset the K-1 income?

TaxGuyBill · ‎12-07-2019

A corporation does not have a home to take a home office deduction, therefore there is no deduction on the 1040.

For the future, if the corporation were to either rent office space from the shareholder or reimburse the shareholder/employee for office expenses (preferably under an Accountable Plan), then the corporation could take a deduction for what it pays.

IRonMaN · ‎12-07-2019

I don't think anybody can. A sub S isn't like an partnership where you can adjust the earnings with business expenses paid by the partner.

Slava Ukraini!

abctax55 · ‎12-07-2019

IF allowed, those expenses would be employee business expenses. And those went away for Federal purposes with TCJA of 2017

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On a 1040 return with a K-1 from an S Corp I need to offset home office depreciation against the S Corp income. Can you help me with this.

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