Home Office Deduction

[CC168]

Why is the software preventing me from taking a home office deduction? I keep getting a message stating that the net profit for my business is $0 or less so I cannot use the deduction. However, I am showing net income of $328 right now.

[LudwigVan_fan]

It's hard to say why TT is not allowing the home office deduction.  A net profit of $328 by who's calculation?   There are many limits to taking that deduction.  I'm going to provide you with some links that you can review and perhaps discover why there is no deduction.

https://www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxes

https://www.irs.gov/pub/irs-pdf/f8829.pdf

https://www.irs.gov/pub/irs-pdf/i8829.pdf

[Carl]

Just to help clarify a bit more, if it helps.

However, I am showing net income of $328 right now.

that doesn't mean it's taxable income. Also, if you're not finished with the SCH C section of the program, things may change when you are and the HO deduction might be allowed.