Home office income question

[Openfire]

I have a client that is a Medical Doctor. He receives a K-1 for his medical income from a large Medical group that has many locations. He has regular office hours and is provided an office.

However, to make additional money on the weekends, he works at an emergency clinic at a different location that does not provide office space. He does some charting, etc. in a home office for this. His income for the additional location and position is included in his total "Ordinary Business Income".

My question: Would it be acceptable (meaning would you be comfortable as a preparer) to take a conservative amount of the income and deduct it from the Line 28 additional K-1 Expenses, and count it as income for the Schedule C (which is labeled as "K-1 Office expenses") to allow some credit for the expenses incurred? He uses his internet, computer, printer, files, etc.

He is considered a Partner, so it would not be 2106 employee expenses.

Thanks in advance!

[Koss]

Line 28?

My question: Would it be acceptable (meaning would you be comfortable as a preparer) to take a conservative amount of the income and deduct it from the Line 28 additional K-1 Expenses, and count it as income for the Schedule C (which is labeled as "K-1 Office expenses") to allow some credit for the expenses incurred? He uses his internet, computer, printer, files, etc.

Line 28 on what form?? Schedule K-1 is not filed with the tax return.

There is a procedure for deducting unreimbursed partner expenses on Schedule E, in the same section where the partnership income is reported. If you're going to do it, I think that's where it belongs.

BMK

[Gary2]

And why is the schedule C labeled "K-1 Office Expense" and not something like "Emergency Room Physician"? (Probably just quick posting when we're all tired and burned out, but perhaps you didn't realize how that phrase reads.)

[Lion]

And, does his partnership agreement require him to use an office in his home for partnership duties? Is it for the convenience of the partnership? Or just his personal preference?

[Openfire]

Yes, it should have said Emergency room. Good catch. I am exhausted, as I am sure most of you are as well. And yes, Schedule E expenses is what I meant. Right now, I am living under the concept that one cup of coffee is equal to one hour of sleep. Just don't expect me to talk in full sentences. Bless you all!