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Tax, SDIRAs & Cost Segregation

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Lisa Mason
  • Tucson, AZ
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Home Office Deduction: Schedule E VS Schedule C

Lisa Mason
  • Tucson, AZ
Posted Apr 1 2015, 19:28

I've sort of got this question floating out on another thread, but I want to directly ask:

As a landlord with 3 rental properties I maintain a dedicated home office. This is the first year I will be claiming the deduction. I'm not a SP, an LLC, and agent, or a broker. I'm simply a landlord that is actively involved in managing these rentals as a business. I'm confident in my ability to take the deduction; I'm just confused about where/how to take it.

Every Landlord's Tax Deduction Guide says to claim it on line 18 of my Sch E as an "other" expense and say "Business use of home".

Others I've spoken to say to use Schedule C, but since my rental income is all on Schedule E, how will that work?

I'm working with a net operating loss for my rentals this year, so putting the deduction in Sch E doesn't seem right because the home office should not offset ordinary income.  Help?
Thanks!

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