Home Office for Taxpayers with rental properties

Technical topics regarding tax preparation.
#1
aiacpa  
Posts:
4
Joined:
16-Mar-2019 7:37am
Location:
Florida
Has any of your clients effectively debated (with the IRS) they should be allowed the home office deduction against their Schedule E passive rental income ? And, what would happen if the rentals were treated as a trade or business?
 

#2
Posts:
1199
Joined:
3-Sep-2021 4:01pm
Location:
OH
Bringing up an old post that no one responded to. I think I would have a similar fact pattern here. Client has 4 duplex that he actively manages himself. Seeing if we can take HOD
 

#3
sjrcpa  
Posts:
6477
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
 

#4
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
The problem with an OIH for rentals is that unless the taxpayer has a respectible portfolio of units, AND self-manages (no PM), they often fail the regular use requirement of an OIH deduction. Of the many requirements for an OIH deduction, that one is the least understood.

Jeff-Ohio does a great job explaining it here: viewtopic.php?f=8&t=20454
 


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