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April 13, 2025
Question

TT is not allowing for the home office deduction, saying that I don't have a net profit, but I do have a positive net profit. Why is it not allowing this deduction?

  • April 13, 2025
  • 1 reply
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    1 reply

    VolvoGirl
    April 13, 2025

    If you are not showing a loss on Schedule C.
    Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.

     

    Or you checked the box on 32b saying Some Investment is Not at Risk.

     

    And I think I saw another reason recently like to do with the QBI?