home office

[Super Mom]

Once again, this is new one for me so no big rush, research on mine not a priority! I had 2 different offices this year, one until June and the other the rest of the year. I have already determined that one is safe harbor and the other is actual. It looks as if I can put the simplified method right on the C and I'm guessing I only have one 8829 for my new office which I will use actual on. Correct?

I'm just concerned the IRS might flag that if I have both? There is no where on the schedule C to indicate that the safe harbor has been reduced from 12 months, but I guess they could figure that out by the numbers???

[taxea]

they are not going to figure it out. you need to detail it in a statement included as part of the return.

[Super Mom]

For electronic filing, I don't see where I can add a statement, however on the 8829 with actual, I could put office 2 June 2014-Dec 2014. Would that be good?

[Super Mom]

I'm just still wondering if they will mark a problem if I have an 8829 AND simplified! Any ideas on a way to let them know upfront, or can I mail mine and handwrite a note on the C?

[Lion]

Post your software, and someone will tell you how to attach a statement.

[Super Mom]

Ok, Thanks! It is ATX

[Lion]

I haven't used ATX for years. Ask over on the UNofficial ATX Forum: http://www.atxcommunity.com or even the official board.

[Burke]

Ok, Thanks! It is ATX

Click on Add Forms and type in Home Office. The worksheets will come up and I think you can figure those out.

[JudyL]

Click on Add Forms and type in Home Office. The worksheets will come up and I think you can figure those out.

Keep in mind that worksheets aren't e-filed with the return, only the statements that IRS requires. ATX does have that nice feature to see what's actually included with the e-file though.
I haven't used ATX since 2011 so I can't help with the attachment, but you can also write an explanation in the blank statement that will be sent with the e-file.
I agree with Lion that if you ask over on the UNOFFICIAL forum that someone over there will gladly answer your question.

http://www.atxcommunity.com/

[Burke]

I think the problem you will run into is trying to do the Simplified Method and the Actual Method on the same Schedule C. I believe the only way you are going to get this to work is to do two Sche C's splitting the income between them based on when it was earned, and show the different OIH methods on each one it applies to. This is not an actual software problem. Note Line 30 on the Schedule C where you have to indicate which method you are using. (You can split the OIH between two businesses on the worksheet, where it is the same OIH all year and two different activities.)

[taxea]

are you sure that two OIH in home are necessary? Does each maintain a completely separate room or area of the home? If this is a MFJ return it all combines to the bottom line. 2 Sch C's should allow for one home office link to each as long as the office spaces are totally separated and the expenses are properly allocated.

[Super Mom]

I can see where 2 Schedule C's may solve my problem because they were 2 different offices---one in my guest house and one in my main home. It will be a little more trouble to do 2 different C's--but not a real big deal. Is that the way I should handle this to be safe?

[Burke]

I think I have found a way.... go to Home Office worksheet. Show date first used for office 1/1/14. Check Simplified Method. Then click on Add New Record tab at top, and a second HO worksheet will come up. Enter date as 7/1/14. Then click on Expense Input tab, and an actual expense worksheet will come up for Home Office #2. As long as Simplified Method and Actual Method do not exceed gross income, I think you will be okay. I did find a source that said if you have two home offices for the same business, you could only use Simplified Method on one. However, I did not have a chance to find a cite for this in IRS info.

[Super Mom]

Thanks Burke! Will this worsksheet go with Efile? Sorry for the dumb question but I don't know how to find what pages/reports will go with the efile--it has never been an issue before!!