@Gen_Joab wrote:
As clergy, I am entitled to deduct business deductions on my Schedule C; however, since I have a housing allowance, I have to subtract the percentage of expenses that is allocable to tax-free income (i.e. my housing allowance). In the past, I always did this in TT simply by inputting a negative number on the "Misc. Expenses" line of Schedule C. Now, however, TT won't allow me to put in a negative number; I get an error message saying "Other expenses must not add up to a negative number." So how do I perform the "Deason Allocation" (i.e. back out that percentage allocable to my housing allowance)?
You may not deduct employee-related expenses on schedule C, you can only deduct expenses that are allocable to the schedule C income. You must do the Deason adjustment yourself. If you have 500 miles and your Deason percentage is 50%, enter 250 miles. If you have $1000 in meals and your Deason adjustment is 50%, enter $500, and so on. Don't use negative numbers. Keep separate records of how you calculated the adjusted values in case of audit.
