DATA-ENTRY EXAMPLES FOR HOME OFFICES UltraTax/1040
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1 DATA-ENTRY EXAMPLES FOR HOME OFFICES UltraTax/1040 Introduction... 1 Example Entering home office information in the asset module... 1 Results... 5 Figure 5: Example 1 Form 8829 for Home Office Figure 6: Example 1 Form 8829 for Home Office Introduction Use the following example to enter home office expenses when entering detailed asset information in the asset module. UltraTax CS transfers information to the appropriate input screens and generates the required forms and statements. Example Entering home office information in the asset module The taxpayer files Schedule C and uses part of a home to conduct business. The taxpayer moves to a new home during the year and is using part of the new home to conduct business. The client is required to file Form 8829, Expenses for Business Use of Your Home, with the return. Even though this example uses Schedule C, the following steps can be completed with Schedules F, K-1, E-Rental, A, and Form However, if you complete this example with one of the aforementioned activities, UltraTax CS will not produce Form Instead a Home Office Worksheet will be produced. Per form instructions, Form 8829 is only to be used with Schedule C. 1. To access the asset module where you can enter asset information, click the Asset tab in the applicable business activity folder. Note: The Asset tab is only available when the Enter asset detail information checkbox is marked in the File > Client Properties > Advanced Properties > Enter Asset Detail tab. 2. From the Business Asset List window, click the Add button. Copyright by Thomson Reuters. All rights reserved. Page 1
2 3. In the Asset Detail dialog, enter the description, date placed in service, cost, method, and life for the first home asset (Figure 1). Figure 1: Use the Asset Detail dialog to enter the date the home was first placed in service, as well as the cost, method, and life. 4. Click the Home Office tab, select the type of home office asset from the Type of home office asset field, and press TAB. Complete the business use of a home information for the first home asset. Notice near the upper-right section of the Home Office tab that the information in the Home 1 field is displayed and the Home 2 field is disabled (Figure 2). TL Page 2 Data-Entry Examples for Home Offices: UltraTax/1040 Copyright by Thomson Reuters. All rights reserved.
3 Figure 2: Use the Home Office tab to enter the home office information, such as square footage, expenses, and carryovers. 5. Click Done when you have finished entering home office information for the first home. UltraTax CS calculates the business use percentage and uses that amount in the calculation of allowable expenses for the first home office. 6. From the Business Asset List window, click the Add button. 7. In the Asset Detail dialog, enter the description, date placed in service, cost, method, and life for the second home asset (Figure 3). Copyright by Thomson Reuters. All rights reserved. Page 3
4 Figure 3: Use the Asset Detail dialog to enter the date the home was first placed in service, as well as the cost, method, and life. 8. Click the Home Office tab, select the type of home office asset in the Type of home office asset field, and press TAB. Complete the business use of a home information for the second home asset. Notice near the upper-right section of the Home Office tab that the Home 1 field is disabled and the Home 2 field information is displayed (Figure 4). TL Page 4 Data-Entry Examples for Home Offices: UltraTax/1040 Copyright by Thomson Reuters. All rights reserved.
5 Figure 4: Use the Home Office tab to enter home office information for the second home, such as square footage, expenses, and carryovers. 9. Click Done when you have finished entering home office information for the second home. UltraTax CS calculates the business use percentage and uses that in the calculation of allowable expenses for the second home office. 10. Click the C-2 tab to open Screen C-2. Use the Net income from home office #1 and Net income from home office #2 fields to enter the net income attributable to the period each home was in service. These fields are force fields and the amounts you enter here are used in place of all amounts automatically calculated by UltraTax CS. Note: The net income force fields for home office activities are available in Screens C-2, F-2, K1-4, Rent, A, and Results UltraTax CS calculates the home office expenses for both homes. It generates and prints two Forms 8829, Expenses for Business Use of Your Home (Figures 5 and 6). UltraTax CS transfers the correct amount of home office expenses to Schedule C, Page 1. Copyright by Thomson Reuters. All rights reserved. Page 5
6 Figure 5: Example 1 Form 8829 for Home Office 1 TL Page 6 Data-Entry Examples for Home Offices: UltraTax/1040 Copyright by Thomson Reuters. All rights reserved.
7 Figure 6: Example 1 Form 8829 for Home Office 2 Copyright by Thomson Reuters. All rights reserved. Page 7
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