Form 8829 - I have an operating expense carryover (line 42) and an excess casualty losses and depreciation (line 43) prior yr. How do I apply these to my current return?

[tellis]

The excess casualty loss has been rolling over each year since 2013.  The operating loss is from 2017.  I don't know how to apply them to the current tax return, specifically where in TurboTax.

[Carl]

Is this for SCH E rentals? Or a SCH C business that you are the sole owner of?

[tellis]

Schedule C, I am the sole owner

[Carl]

Okay here's why I can't make sense of this yet. There is no line 42 on the 2018 1040. On the 2018 SCH C lines 42 and 43 have absolutely nothing to do with losses or carry overs. So right now, I'm probably as lost as you are. But I can tell you that the IRS Form 4562 for depreciation of assets hasn't even been released in it's electronic format by the IRS yet. So I can't even navigate the 2018 TurboTax program to find where you enter carryovers of any type as it relates to a SCH C business. I suspect once the required forms are released and then included in the program, you'll probably find what you're looking for with no problem.

[tellis]

Form 8829, line 42 and 43 from the tax year 2017.  Part IV Carryover of Unallowed Expenses to 2018.

[tellis]

Thank you very much!

[TaxGuyBill]

If you go through the entire home office section, it will calculate your current year deduction.  On the screen immediately after that, it will ask you if you have expenses that were not deducted in a prior year.  That is where you enter it.

[Scott28]

Hi @TaxGuyBill 

I have the same issue, I have a Carryover of Unallowed Expenses from 2017 to 2018 on form 8829, and have gone through the home office several times and haven't seen a place to add this carry over after.

When I go through the home office deductions, and hit continue or done at the end, it just goes back to the original page of income and expenses.

Would love to know specifically where I can add this if possible.

Thank you!

[brandon14]

What if you do not qualify for a home office deduction in the current year, but still have positive business profits and a carryover loss from the same business in the previous year?

[MarilynG]

NOL Carryover

Type 'nol ' in the Search window, then click on 'Jump to NOL '.  

IRS Publication 536  provides worksheets and examples for you to follow, step by step. It also explains adjustments that you may need to make to your net operating loss as you carry it from year to year. 

Home Office 

If you don't qualify for a Home Office deduction, you can still report your business income, your carryover loss, and claim other business expenses.

Type 'schedule C' in the Search window, then 'Jump to Schedule C' to get to the Business section.

Review this IRS website for  Home Office Eligibility

[Suezew]

I have the same issue.  You should be giving us the exact steps.  It's a Turbo Tax program, not an IRS program we are working with.  Where, in the Turbo Tax program should a home office carryover be listed if you no longer have the home office from the previous year?

The previous person is correct.  If you go through the Home Office with nothing to add, it will NOT show you the carryover option!

[WildcatTech]

Yes, I agree.  This is something that there is always a line for on the form itself; the line number may vary from year to year, but the tax form always has a place for it (I've seen it for years, but this is the first year it applies to my situation).  However, I have searched multiple times in TurboTax and tried every trick I can to review step-by-step, by line item, and guided, and still cannot figure out where to enter it in the TurboTax software.

NOL doesn't apply here (this is NOT a "net operating loss," but an "operating expenses" carryover from one previous year to the next.  I can't find a place to enter this in the TT software anywhere in the Home Office section OR Sch C section. 


UPDATE: On the main page for creating a Sch C, I did find an "Uncommon situations" section which specifically says it's for "Carryovers, limitations, at risk information, etc."  However, none of the 5 scenarios listed there are specifically for "Carryover of prior year operating expenses," and if you click "None of the above," you don't get another way to add that in (at least none that I can find).