FORM 8829, HOME OFFICE DEDUCTION IS TAKEN EVEN WHEN THE BUSINESS ACTIVITY HAS LOSS, IN PROSERIES. THIS MUST BE FIXED

[rathy]

PROSERIES IS TAKING HOME OFFICE DEDUCTION EVEN WHEN THE BUSINESS ACTIVITY HAS LOSS.

THIS SHOULD BE FIXED

[taxiowa]

As long as property tax is not limited by SALT and mortgage interest is not limited on Schedule A, the program is correct.

[Terry53029]

The portion of property taxes and mortgage interest for the home office can be deducted even with a loss, unless, as Taxiowa said about SALT, but not other expenses

[Turtle43]

I am looking for guidance in this area. So if a Schedule C has a loss, they can still potentially take the deduction on Business Use of Home (Form 8829).

If in Schedule A, State Income Tax is $8K, Property Tax is 4K with total of $12K and SALT limit is $10K.   Then property tax cannot be taken in Form 8829?  But if State Income Tax is $5K and Property Tax is $4K, total $9K, SALT limited no reached, then a portion of property tax can be deducted in Form 8829?

For Mortgage Interest, if a couple MFJ has over $750K new mortgage loan taken out after 12/15/17, they will not be able to take Mortgage Interest in Form 8829?

[TaxMonkey · Accepted solution]

Real estate taxes and mortgage interest are allowed.

[abctax55]

What needs to be fixed is your shift key....

Interest & taxes ARE allowed, even if it translates into an overall loss on the Schedule C.  The rest of the expenses are suspended/carried over.