Ok, thanks for all the info, just bizarre the IRS wants you to use pencil and paper while using software. I had to break out my pencil sharpener of years past.
I'm following my previous CPA doing this so can see his pattern and how he filled out his past years worksheets. Just to make sure I am clear though with the way Turbo Tax Home and Business wants it entered......
Using round numbers for simplicity........On the Worksheet to figure the Deduction for Business Use of Home:
Line 41 is $7000 and Line 42 is $500.
Line 42 seems to be the Depreciation. I assume $500 is put in the "Misc Supplemental Expenses" box. Is this correct? Is it ok to name it "Depreciation - Business Use of Home"?
I'm super confused on Line 41 for $7000. This is 5 yrs (including this tax year) of carryover. Since you mention that I needed to check "I have passive activity losses", would -$7000 (info says to enter as negative number) be entered on the pages "Report Carryovers - Regular Tax" & "Report AMT Carryovers" in the "Unreimbursed Expenses" boxes? I'm not confident that that is the same thing as "Carryover of Unallowed Expenses to Next Year" on the worksheet, is my concern.
Would I enter -$7000 in the next page "Any Qualified Business Income (QBI) Carryovers" in the box "QBI suspended loss - passive"? (Since we do qualify as a business or trade). Then the next page I would enter the loss amts by year.
If neither are right, let me know where I need to put it please. I just want to make sure I'm putting these amts in the CORRECT space. My understanding of the unallowed expenses on line 41 is that it just needs a "parking place" in order to keep track of it until a year that it could be used.
Thanks!
