I have X amount of $ income from an LLC that I run with my wife, so, I file a 1065 for LLC and each one of us have get a Schedule K1 with X/2 amount as income. Now on our personal tax 1040, I want to claim a Home Office deduction and that, as I understand has to entered on Schedule C of 1040. Now, where do I report my income from the business? Should it be on Schedule C as income or as a partnership income? If we go Schedule C rout, Schedule C only shows a net loss from the business bcause of deductions whereas, I am reporting my income from the Business on Line 17 of 1040. Should I just do a Schedule C (with income reported on it) and not enter my Schedule K1 on line 17? Any help with this is appreciated. How exactly do I add Home Office Expenses to 1065 ? I am using Turbotax Business and I just cant find any way to add Home Office expenses to it. Unless, I just do the worksheet (in IRS pub 587) and then attach that to 1065.