Home office

[katdau71]

I have a client who deals exclusively with rental properties. They have a home office used exclusively for working on the rentals. If I prepare 8829, does it have to be tied to another form?

[Lion EA]

How many rentals do they have?! Is the office used regularly and exclusively for their rental activity?

[mcb39]

I have a client who deals exclusively with rental properties. They have a home office used exclusively for working on the rentals. If I prepare 8829, does it have to be tied to another form?

I prepare the 8829 and then manually input the total into one of the rentals on one of the Other Expenses lines. Have never had a problem with this.

[katdau71]

How many rentals do they have?! Is the office used regularly and exclusively for their rental activity?

They have 9 rentals. Yes, the office is used exclusively for the rental work.

[Lion EA]

I was wondering more about the requirement to use it regularly. If they have nine rent checks to deposit each month, how much time could that take in the office filling out the deposit ticket?!

[katdau71]

I prepare the 8829 and then manually input the total into one of the rentals on one of the Other Expenses lines. Have never had a problem with this.

Do you include the 8829 with the return or just call it Office Expense on the "other" line? Thanks for your reply.

[mcb39]

Do you include the 8829 with the return or just call it Office Expense on the "other" line? Thanks for your reply.

I do not include the 8829. Just call it Office Expenses on the other line. I save the 8829 in the file to substantiate the calculations. Also, print and then delete it from the return before e-filing.

[katdau71]

I do not include the 8829. Just call it Office Expenses on the other line. I save the 8829 in the file to substantiate the calculations. Also, print and then delete it from the return before e-filing.

THANK YOU VERY MUCH!

[Tax Prep by Deb]

I was wondering more about the requirement to use it regularly. If they have nine rent checks to deposit each month, how much time could that take in the office filling out the deposit ticket?!

It's far more complicated than just writing out the deposit slip. I had a client that I did all his billing, collecting, depositing, bill paying, eviction preparations, ect.... and believe me it can be very time consuming when you are talking about that many rentals. Then there is the calls to the insurance company, building material suppliers to get the best price on materials to rebuild a trashed home because the tenant decided to move, then there are the calls back and forth to the attorney trying to get the eviction to happen and then hearing all of the he said she said, not to mention the hours of research someone can do to establish proper landowner/tenant relationships to make sure the landlord doesn't get screwed.

Yes I can see how this could fit into the regular use of a home office, just from my experience with a client with a similar amount of rentals.

Just my two cents worth!

Deb!