Home Office Deduction?

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If under "trader status" you complete Schedule C and itemize all your expenses, including home office deductions.... and you report ZERO income on the Schedule C, the "home office portion of your business did not show a profit"

Thus any unallowed portion will be carried over to future tax years.........



This makes no sense because I want to apply the home office deductions against capital gains reported. I don't need them to carry over, but since the Schedule C reflects "zero income" then how can you deduct expenses from zero?


Im confused and reading the IRS website was of no help :)


Thanks for any input here...:confused:
 
If you are filing with MTM accounting, "Trader Status", Capital Gains/Losses are treated as ordinary gains losses.

So wouldn't Schedule C, Ordinary expenses, offset the income?

I am not a CPA but I am fairly sure this works out that way.

If the expenses exceed the income, you can file a NOL, Net operating loss.

Check Greencompany's website for tons of FREE help!
 
Thanks for the help :)


Maybe I stated incorrectly the "trader status" idea. I am not electing MTM at this time so there is no ordinary income, only capital gains/losses.


Will check out that site you posted for more info!!

thanks again!
 
No Problem!

I filed a beautiful NOL carryback a few years ago and got a nice check.

Ya gotta love creative accounting.

Be careful with writing too much "Home Office" off.
 
The check cleared and never bit me in the ass.
I paid them way too much tax in 1999 - 2000!

My CPA is top notch.
 
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