Can't delete form 4562

[fgur]

I entered detailed home office and car expenses for a new business, and decided later that I don't want to claim these expenses. Turbotax insists on generating form 4562, where the business use % is based on the info I entered initially. It does write down current and prior depreciation as 0, but I'm not sure why the form should be there at all and whether it will cause confusion. I use TT on the web and when I ask to delete the form I go back and see that it's still there. How do I get it to delete it without having to re-do everything?

[KrisD15]

You don't need to re-do EVERYTHING but you do need to go back to Business expenses and delete the Home Office (select "No" to "Do you have a home office?") and delete the vehicle. 

Be aware that if you have a business, and you have business expenses, you are required to claim those expenses. 

[fgur]

Thank you!

It deleted my form, but also eliminated my QBI deduction. Is this expected?

[ThomasM125]

I wouldn't expect deleting the depreciation schedule to eliminate your qualified business income (QBI) deduction. It would be primarily based on your business income. You take 20% of your net business income as the staring point to calculate  your QBI deduction. It would be reduced by prior year QBI loss carryovers along with IRA and self-employed pension plan contributions, self-employment tax deduction, dividends, capital gains/losses among other things. Eliminating your depreciation schedule would likely increase your business income if anything which would increase your QBI deduction in most instances.

You may have to go back through the business section in TurboTax and make sure you answered the questions properly to designate your business as qualifying as QBI:

Also, after you pay for your return you can review Form 8995-A Qualified Business Income Deduction to see how your QBI deduction is being calculated.

[fgur]

Thank you!

Looking at the newly generated 8995-A from after deleting the home office entirely and re-entering it (taking the standard home office deduction this time), I see that the form got messed up. It lists both the business and the spouse (??) in part 1 of the form, even though the spouse's income is W2 based.

Also, I don't quite see the exact same screen that was showed here to re-enter QBI details, I looked it up and used the "jump to" option from the help menu and it simply asked me 2-3 questions about where the business operates from, whether it was for a previous employer (no) and such. So now I'm not sure: (1) why my QBI deduction was eliminated, and (2) how to get TT to re-do the business-related calculations.

[fgur]

Last update for anyone else that might encounter this:

TT online (at the time of this writing, April 2023) does not recalculate everything smoothly if you changed your mind and removed office expenses. To fix it, I had to review the business section and redo the part where it asks about the business type and such. Only after I completed reviewing the section entirely did it fix itself. 

So, the first recommendation I had here was correct and other aspects (like QBI deduction) were adjusted after reviewing the whole section again and clicking through answers I had entered before. 

I hope TT fix it in the future, so people don't have to guess what got messed up.