VS10
Level 1

Deductions & credits

@AmyC 

The purpose of the Line 30 is to account for the inclusion amount to be subtracted from Line 29.

We should be simply multiplying line 20.i.4 (the inclusion amount) by line 9 (Percentage of Business Use). 

Instead on Line 30, what we are doing is subtracting the inclusion amount (20.i.4) from the rental fee (20.h.3), and then prorating it with the line 9 (business use percentage).

And THEN we are subtracting Line 30 (& 31) from Line 29 to get Line 32, which is then transferred over.

In effect we are adding the prorated inclusion account which is exactly the opposite of what needs to be done. Further we are removing the prorated lease payment portion from the deduction!

Correct Solution

Line 30 should be: Line 20.i.4 * Line 9. and not (Line 20.h.3 - Line 20.i.4) * Line 9.

When the interview happens it calculates it correctly. However the amount filled in the form is incorrect and that is what is transferred over to the return.



.