Hello,
The client is 100% shareholder of his S corporation. He has a home office. He has net operating loss of $30,000 from K-1, he also took wages of $70,000 from the S Corp. Do I add back wages to the business profit so that all the home office operating expenses can be deducted instead of carrying over to 2009? Also some one told me that the deduction shall go from 8829 to 2106 to Schedule A subject to 2%. But I believe the home office deduction is directly deducted from the K-1, i.e. Schedule E.
Thanks advance for your help.
The client is 100% shareholder of his S corporation. He has a home office. He has net operating loss of $30,000 from K-1, he also took wages of $70,000 from the S Corp. Do I add back wages to the business profit so that all the home office operating expenses can be deducted instead of carrying over to 2009? Also some one told me that the deduction shall go from 8829 to 2106 to Schedule A subject to 2%. But I believe the home office deduction is directly deducted from the K-1, i.e. Schedule E.
Thanks advance for your help.
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