turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

KuhlDad
Returning Member

Home Office Carryover

I'm using Home & Business and it's giving me a home office expense carryover. It's only allowing  a small portion of my calculated home office deduction. As far as I can tell, it should only be limited if the deduction causes a loss, but the business profit is orders of magnitude greater than the deduction. Any ideas?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
LeticiaF1
Employee Tax Expert

Home Office Carryover

Your Home & Business expense is limited based on the percentage of business use.  The deduction is based on a percentage based on the total area of your home and the area that is used for your business.  

 

There are two methods to calculate your home office expenses, one is the simplified method and the other one is the regular method. ‌Per the IRS tax tip, How small business owners can deduct their home office from their taxes:

 

  • The simplified option has a rate of $5 a square foot for business use of the home. The maximum size for this option is 300 square feet. The maximum deduction under this method is $1,500.
  • The regular method, deductions for a home office are based on the percentage of the home devoted to business use. Taxpayers who use a whole room or part of a room for conducting their business need to figure out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses are deducted in full.

Can I take the home office deduction?

Where do I enter the home office deduction for my business?

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question