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Should the deductible portion of home office mortgage interest and property taxes come through as deductible on form 8829 for a schedule c loss?

rosael
Level 2
I have a tax return with a schedule c loss. They have a home office with mortgage interest, property taxes, depreciation, etc. all of the deductible portion of the interest and prop taxes are still coming through with the loss. Is this something new? Isn't that supposed to carry forward? Everything else is carrying forward.
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rosael
Level 2

Yes, they are itemizing so 90% is going on Sch A

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12 Replies 12
Just-Lisa-Now-
Level 15
Level 15

Its correct, thats how its always worked.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
rosael
Level 2

Thank you for taking the time to respond. It's much appreciated.

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TaxGuyBill
Level 14

It depends ... is the taxpayer Itemizing on Schedule A?

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rosael
Level 2

Yes, they are itemizing so 90% is going on Sch A

View solution in original post

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TaxGuyBill
Level 14

Then as Lisa said, yes, that is allowed and has always been the case.

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rosael
Level 2

Thanks for taking the time to reply.

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rbynaker
Level 11

If they're hitting the SALT cap there's a wonky calculation that has to be made for the 8829.  This year I had my first one of these that actually mattered.

rosael
Level 2

Really? What is that? They are hitting the SALT cap. With so many of my clients being in high tax states, this is bound to happen again.

sjrcpa
Level 15

See Form 8829 and the instructions.


ex-AllStar
rbynaker
Level 11

See the "Line 11 worksheet" on page 4:

https://www.irs.gov/pub/irs-pdf/i8829.pdf

rosael
Level 2

Thanks for your response. I had already taken this into account. I thought there was something else I may have been missing. Lisa is correct. It's been a long season. 

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rbynaker
Level 11

Circling back to your original question/title . . . Unless the clients are just barely hitting the SALT cap then the property taxes should be down on the "excess" line 17 where they are not allowed to increase the Sch C loss.

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