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office in home and std deduction

joanv
Level 1

was at education and was mentioned that if office in home ie.8829-then needs to use sch A for deductions, not std deduction on 1040.  Can't find this written anywhere-anyone else know about this/ Could make a big difference.

Joan

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13 Comments 13
dascpa
Level 10

Either you misunderstood or your instructor was clueless.  No more 2106 expenses therefore for employees no office in home deduction. Only applies to Sch C.

joanv
Level 1

not talking about 2106, asking about 8829 where deducting int + taxes on the sch c-was told that if claimed on the 8829, needed to use sch A instead if standard deduction on 1040-was from IRWS atty. to this speaker.

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joanv
Level 1

meant IRS

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Just-Lisa-Now-
Level 15
Level 15

I feel like there is something  about the mortgage interest and property taxes with 8829 and whether you use standard or itemize...I have so few of these, I can't remember how it works.

@TaxGuyBill  I feel like I saw you explain something about this last year., does this ring any bells?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15

You may have misunderstood.  You usually end up with the same results.

If you itemize, then you enter the mortgage interest and taxes on Lines 10 and 11 of Form 8829 (if you are hitting the $750,000/$1,000,000 limit, then part of it may go to lines 16 and 17).

If you don't itemize, they go on Lines 16 and 17.

 

joanv
Level 1

asking, because the standard deduction sometimes is higher than interest & taxes, charity -but still limited to schedule A-

just haven't written anywhere I've looked.

Know where I can look? 

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joanv
Level 1

what I'm saying, they have to itemize if using int & taxes on 8829, and don't know where to find written.

Sometimes std deduction is higher, so then no 8829?

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TaxGuyBill
Level 15

As we've said, you misunderstood what the speaker was talking about.  So you will never find it written because you misunderstood something.

 

It has to do with when the 8829 is limited due to the business income limitation on Line 7 of 8829.

It USED to be said that even if it is limited (such as a loss on Schedule C), you can still take the mortgage interest and taxes on the 8829 in the current year.

But a court case (and thereafter the IRS) determined that is only allowed if you Itemize.  If you don't itemize and they are being limited on the 8829 due to business income, you can no longer take the deduction on the 8829 for the interest and taxes.  They would be carried to next year.

 

But if the office expenses are NOT being limited, there is no effect and it is treated the same as it always has been.

joanv
Level 1

not asking about limitations, and talked to others attending the seminar, so i thought I'd ask here, for all of us-guess no one has heard about this as yet.  Sometimes I misunderstand, but the other 2 agreed with me.

Guess I still have to look elsewhere,

Thanks anyway

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TaxGuyBill
Level 15

In some cases you people attending a seminar may have the ability to contact the speaker of the seminar. You may want to see if that is possible, and ask for clarification on whatever he said.

qbteachmt
Level 15

"what I'm saying, they have to itemize if using int & taxes on 8829, and don't know where to find written.

Sometimes std deduction is higher, so then no 8829?"

I wonder if this is not a reference to the covid disaster declaration, which you can see is provided for in the 8829 instructions, for lines 9, 10 and 11:

https://www.irs.gov/instructions/i8829

Specifically, about here:

If you are filing Schedule A to increase your standard deduction by a net qualified disaster loss, see Casualty losses reported on line 9, later.

Tip:

You may prefer to itemize your deductions on Schedule A to claim amounts on lines 9, 10, and 11, even if your total personal deductions are less than the standard deduction.

I put the Bold indicators.

*******************************
"Level Up" is a gaming function, not a real life function.
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JRC
Level 8

Yes you must Itemize if you are Deducting Mortgage Interest on Line 10b of Form 8829. Even though your Itemized Deductions are Less than the Standard Deduction. Instructions for Form 8829 will go through each line and if you have to Itemize or not. My understanding is if you use Lines 9-11 (Col. b) you cant use the standard deduction and must Itemize.

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George4Tacks
Level 15

8829 Instructions, bottom of page 2

Taxpayers claiming the standard deduction. If you claim the standard deduction, you will not include any mortgage interest, mortgage insurance premiums, or real estate taxes on lines 10 and 11; instead, you will claim the entire business use of the home portion of those expenses using lines 16 and 17. If you are not increasing your standard deduction by a net qualified disaster loss, then you will not include any casualty losses on line 9; instead, you will claim the entire business use of the home portion of your casualty losses on line 29. If you are filing Schedule A to increase your standard deduction by a net qualified disaster loss, see Casualty losses reported on line 9, later.

You may prefer to itemize your deductions on Schedule A to claim amounts on lines 9, 10, and 11, even if your total personal deductions are less than the standard deduction.


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