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On a 1040 return with a K-1 from an S Corp I need to offset home office depreciation against the S Corp income. Can you help me with this.

Forum|Forum|6 years ago
December 7, 2019
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Lacerte Tax

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Best answer by IRonMaN

I don't think anybody can. A sub S isn't like an partnership where you can adjust the earnings with business expenses paid by the partner.

Level 15

As a side note, if the shareholder took money out of the corporation I'm hoping there is a W-2 also.

mm2Author

Level 2

Yes, he did get a W-2. He is a doctor who does not have an office other than in his home, I've put everything in Lacerte to take the deduction but it does not pull through to offset the K-1 income?

Level 15

A corporation does not have a home to take a home office deduction, therefore there is no deduction on the 1040.

For the future, if the corporation were to either rent office space from the shareholder or reimburse the shareholder/employee for office expenses (preferably under an Accountable Plan), then the corporation could take a deduction for what it pays.

Level 15

I don't think anybody can. A sub S isn't like an partnership where you can adjust the earnings with business expenses paid by the partner.

Slava Ukraini!

Level 15

IF allowed, those expenses would be employee business expenses. And those went away for Federal purposes with TCJA of 2017

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