For the last 4 years, my self-employed wife did work at home, using part of our home. For the last 3 yrs, TurboTax has said we can't take the home office deduction. Why?

[joshuadoug]

The space where my wife works at home is used only for her business. I have asked an accountant and was told we should have qualified for this deduction. My wife works 60 hours a week and spends about 30 hours working in her home office.

[VolvoGirl]

Does she have a Net Profit or Loss on Schedule C?   Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on Schedule C 32b saying Some Investment is Not at Risk.