Partnership & Form 8829, Tom?

[spinnymarie]

Mainly a question for Tom if he's around
We formed a partnership, though I read that you don't advise it, because of some city regulations about hiring employees from a home-based business.
Anyhow, now when we file our taxes, can we still file form 8829 for business use of my home? Or do we need to do that part differently?
Thanks!

[TomCopeland]

Partnership

Mainly a question for Tom if he's around
We formed a partnership, though I read that you don't advise it, because of some city regulations about hiring employees from a home-based business.
Anyhow, now when we file our taxes, can we still file form 8829 for business use of my home? Or do we need to do that part differently?
Thanks!

No, you cannot file Form 8829 if you are a legal partnership. You must file partnership tax forms (Form 1065). To claim house expenses the partnership must pay the homeowner rent and deduct the rent as a business expense. The homeowner must then report the rent as income on Schedule E and claim some house expenses on that form.

[spinnymarie]

Ok, that makes sense.
Thanks for the help!