ALSOThe home office is a little more complex with an S-Corp due to rules about employees leasing home offices to employers.The most common way to handle this is to have the S-Corporation pay rent to you, the shareholder, for home office space and have you, the shareholder , claim the income on their individual return on Schedule E. So far, the net effect to shareholder is zero because ypu have rent expense on the Corporation and rental income on the Schedule E. Next you would pick up a percentage of mortgage interest and property tax on the Schedule E; however, that is already deductible on the Schedule A, so really your only real benefit would be other expenses like insurance, utilities, repairs, and maintenance.
The problem is that 280A(c)(6) stops us from being able to claim anything but mortgage interest and property tax on the Schedule E in this situation, so you use a common work around to get the deduction - set up an accountable plan and have the S-Corp reimburse the shareholder monthly for the portion of utilities and other expenses for the rented home office. That way the reimbursed expenses are claimed on the S-Corp return and no longer blocked by 280A(c)(6).
One important thing to understand is recharacterization. The rental income from the S-Corporation is ordinary income and not passive. This is only important if theyou, shareholder, havepassive activities generating losses. In other words, you cannot use the net rental income from the home office to free up unallowed passive losses on the shareholders "rental" that loses money every year.