TAX PAYER WORKS OUT OF HOME, NOT STATORY. W-2 $50,000, 1099 $3,000, UNREIMBERST EXPENSE $6000 . SCH C FOR $3000, PERCENT EXPENCES FROM $53,000 AND HOMEOFFICE. THEN SCH A FOR SECOND HOMEOFFICE THRU 2106 SHOWING W-2 @ $50,000 PERCENTAGE EXPENCE 89%.
I've read your post three times and I'm still a little confused. Are you asking how to allocate expenses or is something not flowing correctly on the return?
ALLOCATE EXPENSES AND DO YOU NEED TWO HOME OFFICE 8829 FORMS I WAS TOLD. ONE FOR SCH C AND ONE FOR SCH A THRU THE 2106. ALSO DEPRECIATION OF HOME PERSENTAGE OF EACH 8829. ??????
two 8829 would be a problem--there is not an 8829 that hooks to the 2106--the one that hooks to the 2106-schd a is a different worksheet--they also function differently in the program than two 8829 would-they will not automatically allocate between the two office in homes
HOW WOULD I ALLOCATE EXPENSES, 100% SCH C AND SHOW A LOSS AND ONE HOME OFFICE FOR HOME EXPENCES.
INS-JOE
I like your previous calc of 11%/89%. Do one home office for Sch C but then have a negative deduction labeled "alloc expenses to F2106" for the appropriate portion and post a deduction for that amount on the 2106.
Look in the Forms List. Right below Form 2106 is a list of worksheets: 2106 adjustments. Vehicle works, Home office works, and Office depreciation works.Then use Form 8829 for self employment.
The actual issue is whether or not there are separate office locations for each business so that they meet the exclusive use requirement.
SAME BUSINESS MEDICAL TRANSCRIPTION. WAS HIRED HAS A W-2 EMPLOYEE OUT OF HOME, HAS ONE CLIENT LEFT THAT 1099'S TAX PAYER.
INS-JOE
I agree Charlotte. The exclusive use test is what needs to be looked at here.
