On a 1040 return with a K-1 from an S Corp I need to offset home office depreciation against the S Corp income. Can you help me with this.

[TaxGuyBill]

As a side note, if the shareholder took money out of the corporation I'm hoping there is a W-2 also.

[mm2]

Yes, he did get a W-2. He is a doctor who does not have an office other than in his home, I've put everything in Lacerte to take the deduction but it does not pull through to offset the K-1 income?

[TaxGuyBill]

A corporation does not have a home to take a home office deduction, therefore there is no deduction on the 1040.

For the future, if the corporation were to either rent office space from the shareholder or reimburse the shareholder/employee for office expenses (preferably under an Accountable Plan), then the corporation could take a deduction for what it pays.

[IRonMaN · Accepted solution]

I don't think anybody can.  A sub S isn't like an partnership where you can adjust the earnings with business expenses paid by the partner. 

[abctax55]

IF allowed,  those expenses would be employee business expenses.  And those went away for Federal purposes with TCJA of 2017