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How to enter business use of home expenses for single or multiple businesses in ProConnect

by Intuit Updated 2 years ago

This article will assist you with entering business use of home expenses for single or multiple businesses in Intuit ProConnect.

Follow these steps to enter the information:

  1. Go to the Input Return tab.
  2. Select Deductions > Business Use of Home (8829) from the left menu.
  3. Select the form to link the home to in the dropdown for Form (Click on arrow to select from list).
  4. Scroll down to the Business Use of Home (8829) section.
  5. Enter the Business use area, the Total area of home, and any other applicable information.
  6. Scroll down to the Indirect Expenses section.
  7. Enter any indirect expenses in full.
  8. Scroll down to the Direct Expenses section.
  9. Enter only the amount of expenses allowable for this business here.
  10. Select the + (plus sign) from the top of the screen to add another business, if needed.

Important notes regarding direct and indirect expenses

  • For indirect expenses, enter the full amount of the expense for each home office. For example, if the electric bill is $200, enter $200 for each business occupying the home.
  • For multiple businesses in one home, make an entry in Percentage (.xx) of indirect expenses and business use area to apply to this business, if not 100%. ProConnect Tax will use this information in conjunction with square footage to allocate indirect expenses between each home office.
  • For direct expenses, enter only the amount of expenses allowable for that specific business. These will carry directly to the form and be allowed in full.

Regarding Schedule A

  • ProConnect Tax adjusts the amount of indirect mortgage interest and indirect real estate taxes so that only the nonbusiness portion is reported on Schedule A.

Related topics

ProConnect Tax

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