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How do I use 8829 on personal return to calculate depreciation for home office for S-corp business? It is forcing me to 4562 to enter depreciation on personal return?

christin
Level 1
 
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11 Replies 11
sjrcpa
Level 15

"home office for S-corp business" is not allowable on a 1040. The S Corp should reimburse the S corp owner/employee for the expenses under an accountable plan.


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christin
Level 1

I am using the form on the 1040 to calculate the amount for the S-corp reimbursement under their accountable plan.  It has an option to link it to the S-corp and calculate it, but I can't get the system to calculate depreciation - I have to manually override the numbers. 

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qbteachmt
Level 15

If the Accountable Plan doesn't include the terms by which the employee gets reimbursed for "office" costs, then why not use the $5 per square foot method, as you see is provided for in tax regulations? Why are you trying to add a depreciation component to a personal residence? That just becomes a problem, later.

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Nick MacDonald
Level 3

The taxpayer must want the current deduction and will worry about the recapture when the time comes.  The actual calculation may be significantly higher then the simplified method.  It would need to be to justify the record keeping.   

 

qbteachmt
Level 15

"The taxpayer must want the current deduction and will worry about the recapture when the time comes."

?

But there is no Current Deduction; that was repealed. And if you get reimbursed under an accountable plan, you also would not try to take a deduction, because you got reimbursed for it, so there would be nothing to deduct, even if it was allowed like back in the olden days.

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christin
Level 1

The S-corp is reimbursing the employee under an Accountable Plan for an administrative home office.  However, I was trying to use the 8829 form that is in Intuit to help calculate the reimbursement amount at a percentage of all home expenses including depreciation.  I was told I couldn't use the simplified $5 method for reimbursement because of page 5 of the IRS Revenue Procedure 2013-13.

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qbteachmt
Level 15

Can't you just use the form manually to "do" the math? You seem to be trying to force the program to do something you are needing to project, not as an actual and not as part of a return at all. You only need a worksheet, really.

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gwen4114
Level 3

i'M HAVING the same issue with a Schedule C.  The 8829 detail screen does not generate depreciation for the office in the home.  These are the most "non" answers I've ever seen .  Instead of arguing law (which you should assume the preparer knows), you should just give the answer that will cause the inputs to generate the depreciation.  Can anyone else answer this question?  

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abctax55
Level 15

@gwen4114 

THIS thread is about OIH & S-Corps.

YOU say your issue is with Sch C - but you aren't providing any details here, or in your other post of a terse "doesn't work".

 

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qbteachmt
Level 15

I didn't realize that @gwen4114 has asked in the Lacerte section, as well. It helps to ask your own question with specific details and post it in the section for the software you are using, so that the peer users that are volunteers can help you specifically to your program and your question. Thanks.

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qbteachmt
Level 15

@gwen4114 

Well, unless you are a mind reader, it helps to determine if the person really does know the tax regulations that apply to what they are asking, or not. You might Assume, but we have learned better, and we ask for more info when something is not clear.

Obviously, details help, so the prior discussion for the original asker on this topic seems like it was useful and meaningful, in that it allowed your Peer users who volunteer here, to be helpful to the person asking a rather odd scenario.

The person was trying to develop a rate by using a tax form as a worksheet, and not specifically "doing" the return to which the form applies.

Which means you are not having the "same" problem, because this person was not working on a Sched C, but a 1040.

"Can anyone else answer this question?"

Well, the specific answer has been provided: it no longer applies.

For you to get help that applies directly to what you are doing, more details from you would be helpful. Thanks.

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