Carry over of home office deduction?

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  • Mom2Two
    Daycare.com Member
    • Jan 2015
    • 1855

    Carry over of home office deduction?

    I am using Turbotax, since that's what I'm used to. When I enter my home office deduction information, it says that the amount is greater than my profit and some of it needs to carry over.

    But I am still showing a profit on my bottom line. I don't get it. Does anyone have some insight?
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    home deductions

    Originally posted by Mom2Two
    I am using Turbotax, since that's what I'm used to. When I enter my home office deduction information, it says that the amount is greater than my profit and some of it needs to carry over.

    But I am still showing a profit on my bottom line. I don't get it. Does anyone have some insight?
    Your house deductions (with the exception of property tax and mortgage interest) cannot create or increase a loss on Schedule C. That may be what is happening. However, check line 8 on Form 8829 to make sure it is the same number as Schedule C, line 29. In TurboTax earlier it asks what percentage of your income is made out of your home. The correct answer is 100% (because you didn't earn money away from your home). Some providers make the mistake of putting their time-space% here.
    http://www.tomcopelandblog.com

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    • Unregistered

      #3
      Thanks, Tom! I'll go and try to nut it out!

      Comment

      • Mom2Two
        Daycare.com Member
        • Jan 2015
        • 1855

        #4
        That really helped!!! Thank you!!!

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