Home Office-Shared House

[equinecpa]

I have a client who co-owns her house with a non-spouse partner. Each individual enters what they personally paid for int & property taxes for Schedule A. One of the individuals has a home office -would you use the Schedule A figures for the home office deduction? Or would you use total interest & property taxes for the house?

How about the expenses?

I'm thinking the % home use is figured on the whole house so shouldn't the figures used for the expense calculations be for the whole house?

Thanks

Carolyn

[dsi]

I would use the sch A figures....

[equinecpa]

That's what I did last year -but then what about utilities? What she pays or the household expenses? Looking at the instructions it says expenses for the residence, not "your" expenses for the residence.

[dsi]

I would only use what she paid as expenses.

[equinecpa]

That was my knee jerk reaction...but if the house is say 2000 sq ft...and her office say 200 sq ft. Her office is 10% of the house.

If she pays for 1/2 the household expenses, she's technically paying for 1000sq ft, and her office is 20%...see where I'm coming from?

I'm thinking the % should really be calculated for the whole house.

[dsi]

I would use only her half of everything...so divide everything in half.

[kaimana]

dsi has replied three times with the correct answer...if she shares ownership of the house and pays a portion of the expenses then I would actually take 1/2 the sq ft of the living area and the expenses she paid. kaimana

[Kram BergGold]

agree with kaimana

agree with kaimana