All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎05-17-2017
Accepted Solution

Home Office Deduction and Documentation

Hello!

 

I am completing my taxes online using the H&R Block Professional Tax service, and I was asked to complete a Schedule C for my business, where I included information about my home mortgage interest, etc. 

 

Should I also input this information separately (as given on my 1098 form from the mortgage company) with my personal taxes?

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Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Home Office Deduction and Documentation

HI BRatliff,

 

Welcome to the H&R Block community.

 

You can deduct the part of your mortgage interest and real estate taxes that was not deducted on Schedule C on your Schedule A for the personal deduction.

 

The deduction on Schedule C is for the home office area of your house only.  Let's say the area of your house is 1,000 square feet and the area of your home office is 100 square feet.  Let's say your mortgage interest is $5,000.  Your deduction on Schedule C is equal to 5,000 x 10% which is equal to $500.  So your Schedule C deduction is $500 and your personal deduction on Schedule A is the remaining $4,500.

 

In the online software you should be able to see what your home office deduction is on the summary screen if not before that.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Trusted Pioneer
Posts: 6
Registered: ‎02-14-2016

Re: Home Office Deduction and Documentation

When I key in the 1098 value HR Block Deluxe takes the inverse of the value from the home office calculation and then adds this to schedule a minus worksheet. When I calculate the amount only for the home office and use that on form 8829 it does not bring anything over but uses the 1098 value entirely. That is probably appropriate but mini worksheet shows that the value from 8829 can be brought over and added to the schedule A with the 1098 value.

Do I need to override the program to get this to work? Does the tax code allow you to claim part of the real estate tax as deduction and then claim the rest as a credit?