Where to add Home office expenses for rental property income

I have a client that has 1 rental property and 1 primary residence.  They have a home office in there primary residence for Management and accounting of their rental.  This is a separate space that is used strictly as an office.  If you use form T776 for rental income where do you add the home office expenses?


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Good morning Brian. If it was my client, I would advise them against it. I think there is a rule that applies about using the home office for more than 50% of the time to earn income. Unless they have 5 or 10 rental properties and it is their major business in rental, then yes it justifies having a home office but how much of an home office use they would have for one property's "Management and accounting"? I think they are asking for triggering an audit.

That is what I would think but it would be interesting to see what other people think.

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