Partnership office in home

[Porat]

A partnership changed business location and started operating out of one of the partners home, with the partnership paying rent. According to the instructions for the 1065, the rent would not be allowed as the partner is using the home as a dwelling unit. How would the one partner get a tax benefit here. If they tried home office deduction, they are not an employee, being a partner/owner. The partnership is not an s corp. How would be the way for the Partner to get a tax benefit here? Take the expenses of the home usage as a unreimbursed Partnership Expense on their individual 1040 schedule E?

Thanks

[rosieea]

A partnership changed business location and started operating out of one of the partners home, with the partnership paying rent. According to the instructions for the 1065, the rent would not be allowed as the partner is using the home as a dwelling unit. How would the one partner get a tax benefit here. If they tried home office deduction, they are not an employee, being a partner/owner. The partnership is not an s corp. How would be the way for the Partner to get a tax benefit here? Take the expenses of the home usage as a unreimbursed Partnership Expense on their individual 1040 schedule E?

Thanks

If the partnership agreement requires partners to absorb such costs without reimbursement, then I believe the expenses could be taken on Sch E.

[tftaxes]

partnership rental of home office

The partnership rents the home office from and individual. What is confusing here is the term Home Office. What really is going on is the partnership is renting a room from and individual. The partnership writes off the rent on the 1065. the individual treats the room as a rental. It goes on a schedule E. The percent of the floor space determines the percentage that the INDIVIDUAL uses as a write off againt the rental income. Example:
Room is 10% of the total floor space. The room get 10% of the expenses, Mortage, Property tax, utilities....etc..

[Bird Legs]

Ptr. office in home

I say no. See page 5-13 and19-11 in TTB.
The business use of the home must be for the convenience of the employer, and
The employee cannot rent any part of the home to the employer and use the rented
portion to perform services as an employee for that employer.
In the case of an individual or an S Corp. no business deduction is allowed with respect to the use of a home that is used by the taxpayaer as a residence. This is true even if the residence is used in the taxpayers trade or business. Code Sect. 280(A).
Instead of ptrship paying rent, how about just being reimbursed for the business portion
of the expenses?

[KJ Judd]

Or if the partnership requires it, claiming the expenses as UPE (unreimbursed partnership expenses) on Schedule E?

[OldJack]

Instructions for where to deduct for a partner is discussed in Pub 587, Business Use of Your Home, page 19 as calculated on a worksheet on page 24 entitled "Use this worksheet if you are filing sch-F (1040) or you are an employee or partner".

Page 19 explains if the partner as an individual is claiming the expense due to being required to pay partnership expense then it goes on 1040 Sch-E as has been stated. If the partnership reimburses the expense it deducts the expense and reports it on 1065, schedule k-1.