How to deduct home office expense carryover from 2016 when I change the primary residence at the beginning of the year?

[sf_wind]

I have a self-employed business and I use my primary residence as my home office. In the past years, the business profit barely cover the total cost so I had carryover from 2016 to 2017. 

In 2017, I made enough profit that should cover the carryover.

However, I changed my primary residence at 01/01/2017. So in 2017, I did not use my old home for the business. Instead, I converted that to a rental. 

My question is that how to deduct the carryover to 2017 since I did not perform business on my old home? 

I tried to follow the steps in the turbotax questionnaire. But since I didn’t spent any time on my old home, the amount is carried over to 2018. But I will never use that home for home office any more…

Any suggestion is appreciated. 

Thanks. 

[MichaelDC]

As you go through the home office expenses for your business, be sure that when you enter the date that the office was first used for business that it is a date in 2016.  If the first use date is in the current year, the question about a carryover amount will not be generated.

Then, continue through all of the home office expenses (after the home office expense summary) until you get to a screen with the title, “Did you have any home office expenses not deducted in a prior year?” where you will answer Yes and then enter the amounts.

Please feel free to post any additional details or questions in the comment section.

[sf_wind]

Yes, I have tried that. The problem is that I did not spent any time on my old residence in 2017. The allowable deduction is based on the time I spent on that residence in 2017 I suppose. Turbotax calculated that none of the carryover can be deducted. They are all carried over to 2018… That’s the question I ask about. Why it cannot be deducted. Thanks.

[MichaelDC]

Thanks for the update. So, when you entered your NEW office in the home, you entered first use date of 2017 and not 2016? The carryover is attached to the business and not the house.
Also,  if you are using the Simplified Method for your home office expenses on your 2017 return, then you cannot use the amounts carried over from a previous year.
This limitation is imposed by the IRS, not TurboTax.
However, the carryover is not lost for good.  You can still keep track of it on your own and use it on a future tax return when you choose to claim the actual expenses again.
This may be down a  whole other path here. Let me know if I'm not on the right track here.

[MichaelDC]

Also, the number of months you used the office more than 15 days is used only if you take the Simplified Method for the Home Office Deduction or if you ran a daycare facility, so I wouldn't let that restrict your carryover.