My wife has a home based business and we take a deduction for buisiness use of the home. The office occupies 7% of the home so 7% of some our household expenses such as mortgage interest utilites etc are deductible as business expenses.
How do you go about entering transactions for these expenses so that they show up correctly when I run a tax report? For example, when I enter a mortgage payment, I currently enter an amount for principle (that get's subtracted from a loan account), the amount for mortgage interest (which is flagged as a tax item going to schedule A), and an escrow payment. I need to have 93% of the interest payment going to schedule A and the remaining 7% going to form 8829. Do I have to do this manually by entering another split item in the transaction and calculating the percentages accordingly or is there a simpler way to do this?
Thanks
Randall