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Level 2
January 23, 2020
Question

How do I carry over business expenses from a previous year. My business should carry over expenses if possible to match the personal deduction threshold

  • January 23, 2020
  • 12 replies
  • 111 views
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12 replies

SusanY1
Level 15
January 23, 2020

Business expenses for employees are no longer deductible on the federal tax return. Therefore,  unreimbursed expenses for employees for have no effect on your personal deductions.

 

There are exceptions for Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.  However, these types of expenses cannot be carried over. If you have these types of expenses, you will enter only the ones incurred in 2019.

 

If you have business expenses from self-employment income, you will enter the carryovers in the section for Business Income and Expenses.  To do this:

 

  1. Login to TurboTax.com.
  2. Click on Tax Home on the left side of the screen.
  3. If prompted, click on Continue where I left off or Take me to my return.
  4. Click on Wages & Income.
  5. Scroll to Self-employment income and expenses and click Start (or Revisit.)
  6. During the interview process, TurboTax will ask about special situations.
  7. Check the box "I have at-risk losses to carry over" to enter the expenses.
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Level 2
January 27, 2020

@SusanY1 

thank you for the answer. I have gone through my 2018 tax return and am trying to amend it to carry over expenses to 2019. I have not found the question about investment being at risk on the mobile site. How do I get to that question about carrying over and investment being at risk?

Level 15
January 27, 2020

You are NOT allowed to selectively choose to take deductions or not.  If they are allowable, they MUST be taken.  Sorry.

Level 2
March 31, 2021

I am having problems with this as well. I have a carryover and it populated at the end of the Home Office Section from Form 8829. I have a net profit this year but it did not make a difference - did not give me the option to use my carryover. I tried to get back to the interview to say ‘yes’ to that question and I could not get into those questions anymore.  Where do I go from here? Thank you!

MarilynG
Level 15
April 2, 2021

@Lambchop Your Business Expenses are deducted in the year you claimed them, even if this gives you negative business income.

 

A Home Office carryover is different.  It will be continued to be carried over until you are able to claim Home Office Expenses (which it sounds like you can this year).

 

It sounds like the carryover populated Form 8829, but if the same amount is shown on Lines 43 for 2021 carryover, it is not being applied this year. 

 

If you moved in 2020 and indicated this was the first year using the new office, the carryover wouldn't be applied. 

 

Make sure you indicated the % of Income 'earned from your home office'.  If self-employed, this would be 100% (unless you have another office). 

 

Since we can't see your return in this forum, you could try deleting your Home Office entries and re-enter them to see if this resolves your issue.

 

You can also request an Offline Review.

 

Click this link for more info on Home Office Expenses you may find helpful. 

 

 

 

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