Form 8829 incorrect calculation

Forum|Forum|5 years ago
February 23, 2021
2 replies
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Line 40 Business basic of building = 41,249

Line 41 Depreciation percentage = 3.1747%

Line 42 SHOULD BE 1,309, just like 2019's return. However, Line 42 shows 26,756, causing lines 30 and 44 to be incorrect also. I tried to change the entries on the form itself, but appears to be blocked. This appears to be a calculation error in the application. Please advise if a future update will correct.

Best answer by black60806

Intuit confirms my suspicions...it is a bug. I was able to manually correct on the forms. There will be a fix for this upcoming.

AmeliesUncle

Level 15

Did you add any improvements to be depreciated ($25,000-ish of business Basis)?

black60806AuthorAnswer

Level 2

Intuit confirms my suspicions...it is a bug. I was able to manually correct on the forms. There will be a fix for this upcoming.

277235

Level 2

How did you manage to correct it on the forms? I can't access mine (using Turbotax for Home & Business on a Mac)

AnnetteB6

Level 15

I have a possibly related problem. I have a home-based business, moved during the year so I have two home offices. Calculated each separately and added deduction together for Schedule C line 30. However, when running a review it flagged this with the message: "... form 8829 Worksheet: Allocable home office expenses from both copies of the Form 8829 worksheet, when added together, must equal Schedule C, line 28 total expenses of $xxxxxxxx." This seems incorrect. I believe the total should be in line 30, which equals the total of the two home office expenses, NOT Total Expenses in line 28. Please advise.

The message regarding Schedule C line 28 total expenses is correct.

When there are two home offices involved for the same Schedule C business, all of the business expenses unrelated to the home office must be allocated between the two home offices. This information is used to apply any required limitations to the home office expense since the home office expense cannot generate a loss for the business.

You may allocate the business expenses to the two home offices in any manner that makes sense for your situation. For example, if there is an expense that was incurred on a monthly basis, allocate it to the two home offices according to the months that each office was used.

Take a look at the following TurboTax article for more information:

How do I allocate expenses for two home offices?

@GaryinOz2002

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