Discussion:Schedule F - Home office for farm

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Discussion Forum Index --> Basic Tax Questions --> Schedule F - Home office for farm


Discussion Forum Index --> Tax Questions --> Schedule F - Home office for farm

CARAIF (talk|edits) said:

4 February 2009
I picked up a new client this year and I was assuming that I could use a home office deduction for this farm. Client does all bookeeping and recordkeeping in the home on the farm in a seperate office. On the schedule F in proseries there is no way to attach a form 8829, and I was wondering if there was something I was missing in the regs. Could someone enlighten me on the regs or help me with the techinical aspects in Proseries?

Lukepccpa (talk|edits) said:

4 February 2009
The Form 8829 really isn't set up to use with a farm. Also, most of the home expenses are intermingled with the farm, so it's hard to get a handle on the actual home expenses unless you get really detailed.

For example, most farms run all electricty through one meter, pay all the insurance on one policy, and pay the real estate taxes in a lump sum. And, unless you've had new home construction on a separate note, the house loan is intermingled with the rest of the farm real estate loan.

If the client gives me enough detail, I will break out the house expenses per the detail, apply the home office deduction (if applicable) to these expenses, and put the amount as "office expense" on the Schedule F. If the client doesn't give me enough detail, I will try to make a reasonable allocation for personal use.

My experience in farm related audits is that if you at least attempt to make a reasonable allocation for personal use, there usually isn't a problem. The problem is when you try to deduct 100% of what is obviously a combination of farm/home expenses.

David1980 (talk|edits) said:

4 February 2009
Form 8829 is only used for Schedule C. That's why when you print them out it says on the top "File only with Schedule C (Form 1040)."

IRS Publication 587 has a worksheet you can use.

"If you are an employee or a partner, or you file a Schedule F (Form 1040), Profit or Loss From Farming, use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help figure your deduction. If you file Schedule C (Form 1040), Profit or Loss From Business, you must generally use Form 8829, Expenses for Business Use of Your Home. The Schedule C Example, near the end of this publication, shows how to report the deduction on Form 8829."

CARAIF (talk|edits) said:

4 February 2009
Thanks Luke! I hav been pressing th Client to give me enough data, almost like a schedule c and using a prcentage of square feet allocation over all of the buildings (chicken houses).

RoyDaleOne (talk|edits) said:

4 February 2009
See Pub 587 Page 25 for the Worksheet to figure office in home for Schedule F.

Publication 587

Moon101 (talk|edits) said:

6 February 2009
Why not do a dummy 8829 ( fill out the form and what ever the allocated expense amount is , put as a profit on Schedule C to cancel each other out.) Then...put the actual loss on Schedule F as Home Office Expense.

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