bm30003700[at]aol.com wrote:

- quote -

You didn't broach that possibility, i.e. the LLC actually
paying good money for "rent" in your first post.

First ask the question, why are home offices necessary?
Is there no office space at the business location? Secondly,
do all members need home offices and if so, will all member
actually be paid a stipend for such use?

A partnership is compose of individuals and as such, tax
consequences of individuals are self dealing, so it
wouldn't make sense to pay good money now would it?

Any allowable home office expense (remember; IF justified)
are taken not on page 1 of schedule where one reports
rental income, but on page 2 as another item in reporting
the partnership income/loss.

ChEAr$,
Harlan Lunsford, EA n LA

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Don't understand this response. Realize there are issues
where employee rents room of his residence to corporation,
but isn't it possible for partner to rent a room of his home
to partnership?

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bm30003700[at]aol.com wrote:

- quote -

And you heard wrong, too. See the correct answer above
about how to report on page two of schedule e.

ChEAr$,
Harlan Lunsford, EA n LA

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Thanks for the great response! Since posting my question,
I learned from a CPA friend of mine that he handles this
situation by simply having the partnership pay rent to the
partner, and having the partner file Schedule E showing rent
income and expenses.

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bm30003700[at]aol.com wrote:

- quote -

There's a schedule on page 24 of IRS Publication 587
(available here: http://www.irs.gov/pub/irs-pdf/p587.pdf)
that can be used by partners to determine how much of a home
office deduction they are entitled to. Home office expenses
may be deducted by a partner "if you were required to pay
these expenses under the partnership agreement." The quote
is from page 19 of Pub 587--it's up to you and your tax
preparer to decide whether you meet this test.

If you do, unreimbursed partnership expenses are taken as a
deduction on Schedule E. You basically pretend that you
received a K-1 from a partnership named "unreimbursed
partnership expenses" showing a loss for the amount of the
deductions to which you are entitled. You will also need to
attach the normal supporting forms or schedules needed to
claim these sorts of expenses.

--Chris Ballard

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I can't seem to find guidance for how to deduct home office
expenses incurred by an LLC member, where LLC files as
partnership. Anyone point me in right direction?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >