ETax847 Posted March 28, 2022 Report Share Posted March 28, 2022 If a client owns a rental property, can they take the home office deduction on their Sch E? If so, where do you input the expense? I have read conflicting things on whether or not this is allowed. Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 28, 2022 Author Report Share Posted March 28, 2022 This is his only rental and he has a full time W-2 job Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 28, 2022 Report Share Posted March 28, 2022 Regular & exclusive use? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 28, 2022 Author Report Share Posted March 28, 2022 Yes to both. There seems to be a lot of gray area here. I know you can claim the home-office deduction only in connection with a trade or business. In his case he seems to be operating the rental property as an investment, not as a trade or business. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 28, 2022 Report Share Posted March 28, 2022 The TCJA pretty much blocks this deduction. 2 Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 28, 2022 Author Report Share Posted March 28, 2022 Do you have anything to cite? I'd love to be able to share this with a client Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 28, 2022 Author Report Share Posted March 28, 2022 The client sent me this link saying is allowed to do this: https://www.biggerpockets.com/blog/taxes-not-real-estate-professional Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 28, 2022 Report Share Posted March 28, 2022 I am curious, where do you propose to deduct home office? The only two places that I am aware of is on Schedule C or as an "Unreimbursed Partnership Expense" Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 28, 2022 Author Report Share Posted March 28, 2022 Those that do this, do it as an Other Expense on the Sch E Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 29, 2022 Report Share Posted March 29, 2022 On 3/28/2022 at 8:28 AM, ETax847 said: This is his only rental and he has a full time W-2 job 23 hours ago, ETax847 said: In his case he seems to be operating the rental property as an investment, not as a trade or business. That sums it up right there per 28OA(c) 1 Quote Link to comment Share on other sites More sharing options...
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