Rental Home Office

[Super Mom]

If my clients meet all the qualifications for an office in home for rentals, that goes on other expenses on the E right? Do I use the safe harbor or must I use percentages?

[Roland Slugg]

A taxpayer can not take the OIH deduction for managing his rental properties.

[taxea]

A taxpayer can not take the OIH deduction for managing his rental properties.

I disagree if he meets the working hours etc requirements and materially participates (by actually managing the properties). I would link the 8829 to the Sch E.

[spanel]

A taxpayer can not take the OIH deduction for managing his rental properties.

I agree. There is no way to "link" a 8829 to a sch E in my software either. There is a reason.

Chris

[ATSMAN]

I disagree if he meets the working hours etc requirements and materially participates (by actually managing the properties). I would link the 8829 to the Sch E.

Perhaps he should be reporting the income on Sch C and do a OIH instead of an E.

I can't see where you will insert that expense on Sch E and link it to 8829!

[TaxGuyBill]

I agree with Taxea. Rentals on Schedule E are not prohibited against taking a Home Office deduction.

Just because your software doesn't have the capability to do something does not mean it is not allowed.

[S T]

My software will link a 8829 to schedule E

Sandy

[taxea]

Perhaps he should be reporting the income on Sch C and do a OIH instead of an E.

I can't see where you will insert that expense on Sch E and link it to 8829!

If the TP handles all the normal management issues, rather than using a property manager and spends the required time there is no reason why he does not qualify to use a home office. If your program will not link the 8829 then input the allotted expenses directly on the Sch E with an explanation.
TP would not do a Sch C because he/she is not providing services.

[Lion]

How many rentals is he managing that he "regularly and exclusively" uses a home office?

[Super Mom]

They are managing a trailer park with 6 rentals.

[Super Mom]

My understanding is that if they meet exclusive use, and no other office, etc., landlords can claim a home office deduction. My software won't link the 8829 to the E either, but I thought this could go in "other" expenses.

[TaxGuyBill]

Yes, I would put it under "other" expenses. You should also be able to use the Simplified Method for the home office if you want to use that.

[taxea]

My understanding is that if they meet exclusive use, and no other office, etc., landlords can claim a home office deduction. My software won't link the 8829 to the E either, but I thought this could go in "other" expenses.

You can put the expenses of OIH on the Sch E with an explanation in each box that says "OIH expense". Or do the same in the "other expenses box....just be sure you enter the allocated amount.

[David1980]

Form 8829 is only filed with Schedule C. It says so right on the form "File only with Schedule C (Form 1040)."

Some software might use 8829 as a worksheet to calculate the office in home deduction for other schedules.

Is rental income on Schedule E a trade or business?