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)

GaryinOz2002

Level 2

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

I understand and have allocated percentages that sum to 100%. The problem is that in the review check, they ask for "allocable home office expenses" and a box, but the total of home office expenses as specified in the check does not total Schedule C line 28 and I have no idea how to make these numbers match, either the total home office expense from both home offices (I moved last year), or the total expenses. It is not clear to me in Turbotax how this error gets fixed. I cannot just enter a number for total expenses for each business to satisfy the Review Check because that number does not come from somewhere else. The numbers for home office expenses specifically are derived from earlier forms and worksheets (and do not sum to total expenses). I need someone to walk me through this in TurboTax (and yes, I have allocated percentages for each home office based on how many months of the year I occupied each home office and I completed the worksheets for the two home offices, same business, used last year). Please tell me what I need to do. Right now in the box (Check This Entry) I entered the home office expenses allocated to each home office, and it keeps kicking this back out. Please tell me how I can talk to a "live" person who can help me not get this review error. Right now the numbers are not making sense, and I've gone through all the calculations for each home office as well as the calculations (using percentages of time) for all other business expenses and they do not add up to the number TurboTax tells me it should add up to.

Thanks!

Gary