Taxpayer has a home daycare. Therefore, she is entitled to a deduction for the business use of her home. Should her mortgage interest be reported on Schedule 8829 and Schedule A? Or is it not allowed to be reported on Schedule A if she is getting a partial Schedule A itemized deduction for the portion related to her business?
Report it on the 8829 worksheet and the personal percentage will flow to the Sch A.
Put it on the 8829 under the column for indirect expenses and the program will allocate between the office in home and Schedule A.
If you use ProSeries Professional and put the mortgage interest and property taxes on Form 8829 you can make the election to have ProSeries professional move the personal portion to Schedule A.
Correct tax preparation require you to charge the portion of the mortgage interest and real property taxes against the home office deduction or you would defeat the purpose of the home office deduction form and its built in limitations.
