Deason Allocation on Sched. C for Clergy

[Gen_Joab]

The "Deason Allocation":  since a certain percentage of clergy income is tax-free (housing allowance), correspondingly the same percentage of expenses allocable to the tax-free income cannot be deducted from Sched. C.   IRS directions say that - once adding up all expenses - the minister is to deduct that percentage of expenses on line 27 of Sched. C.  This deduction of expenses, of course, would be a negative number.  (e.g. a minister has $1,000 of total expenses added up on lines 1-26, but since 25% of his income is tax free, he must deduct $250 from that total on line 27a. , thus reducing his total deduction to a net of $750 in expenses).

In the past, TurboTax always allowed me to put that negative number on line 27a, but his year it won't.  It says that the program cannot allow a negative number on line 27a.

Therefore, how now do clergy reduce their total expenses on Sched. C for the Deason Allocation - especially since IRS directions explicitly say to reduce those expense on line 27a (Pub. 517, pp. 10 & 15)

[Opus 17]

The easiest thing to do is to enter a reduced expense amount to begin with.  For example, if your allowable percentage is 50%, just enter half your mileage, half your supplies, and half of everything else.  You are technically supposed to file on paper and include a written explanation, so you would simply explain you entered a reduced amount.  Or e-file, and have the statement available if requested.  

[Gen_Joab]

Thank you for the suggestion.