Home Deduction Office I have a home office, I worked out of this office at least 85% of the time for work only and did this for 11 month, Why do I not qualify?

[jasweet21]

It states that I am not eligible because my Net Profit  for my work was zero or less  which I don't understand what that means. How do I qualify for a home office deduction?

[JeffreyR77]

A home office deduction is only allowed to be taken in a year where it reduces income. 

It is not allowed to increase a loss in a business. 

For example, if your business has a profit of $5000 before consideration of a home office deduction, a home office deduction would be allowed up to $5000. 

If the business is showing a loss of say -$1000 before consideration of a home office deduction, no home office deduction would be allowed for that year. 

You should still enter your expenses for the home office deduction as the expenses will carryover to next year and if there is profit to allow next year's home office deduction and still excess profit, the disallowed expenses from this year can be used next year to reduce next year's business income.

Form 8829, Home Office Expense (see Part IV)

[rjohnson43]

Is this still current as of 2023?

[AnnetteB6]

Yes, this is still current.  

The only difference to note is that if you choose to use the simplified method for claiming home office expenses, any unused expenses are not carried forward to a future tax year.  The carryover is only allowed if the simplified method is not used.

@rjohnson43