Where is the "Gross income limitation" for home office deduction coming from?

[fssbob]

OK, I've done that.

Token # 56764098-71908369

I haven't started the State dialog yet, but when I do it will be California.

Thanks.

[fssbob]

I'm not sure why after I pasted in the token number it replaced some of the number with [phone number removed] as it wasn't my phone # that it removed, but if you need the rest of the number, let me know how to get it to you without the system obscuring part of it like that.

Thanks.

[VolvoGirl]

You can post a screenshot of the token number.  

[fssbob]

OK. Here it is:

BTW, I don't think it matters, but I'm using TurboTax Deluxe Mac, not Windows.

Thanks.

[KeshaH · Accepted solution]

Thank you for sharing your token. I've looked over your Form 8829. There is a smart worksheet for line 8 on the form. Line B seems to be stuck. Right now it's showing that none of your gross income on your Schedule C was attributed to your home office. If you update this line to 100% directly on the form, the gross income limitation will update to show your actual income amount.

[fssbob]

That fixed it. Thanks!

[teachme]

I have exactly same problem as you.  I have profit in Schedule C, but form 8829 ignored my profit and no deduction allowed to take.  I finally found out (after very detailed and many times testing) that you will need to pull Form 8829, manually enter 100% in Part II item 2 - Percent of gross income from business use of home reported on Schedule C, then Turbotax will calculate the simple way deduction.  Hope this helps.

Turbotax: Please confirm this is a right way to fix this problem.  Thanks!

[PatriciaV]

Yes, if 100% of your business income is generated in your home office, entering 100% on Form 8829 Part II Line B is correct.

@teachme 

[MMV1]

I have the same problem but am not able to enter 100% in Part II Line 2. I am not being allowed to enter any number directly into the form on that line. I clearly have profit. Any more ideas?

[DaveF1006]

The gross income limitation for home office expenses is based on the income generated from the business conducted in the home office. Essentially, the deduction cannot exceed the gross income from the business use of your home. If your business has a net loss, you cannot claim the home office deduction for that year, but you may be able to carry forward unallowed expenses to future years if using the actual expense method.

If you do have some net income before the Home Office Expense is applied, you may be able to use some expense to bring your net come to zero. The remainder may be carried forward for unallowed expenses in a future year. 

[MMV1]

Just figured it out from previous posts. The issue is resolved.