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Form 8829 says I cannot claim the home office deduction because my business did not show a profit in 2024, but the Schedule C shows a large profit. What can cause this?

 
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VictoriaD75
Employee Tax Expert

Form 8829 says I cannot claim the home office deduction because my business did not show a profit in 2024, but the Schedule C shows a large profit. What can cause this?

You must be reporting a tentative net income on line 29 of Schedule C in order to take a deduction for a home office on Form 8829. Home office deductions cannot put a business into a loss position or increase an existing net loss. If you have reviewed your Schedule C and see a net profit, you will want to review your entries in TurboTax. It is possible you are not tying the home office deduction to the affected business. See the link below to assist.

 

Where do I enter the home office deduction for my business?

 

@tntbattle 

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