F8829 Office in Home

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I'm preparing a return with Office in Home deduction 20.94% business use. Client is talking the standard deduction. Thus I can input the numbers directly on F8829, Line 10 & 11.

ProSeries Prof'l software is telling me to use Lines 16 & 17 (Excess) lines instead of Lines 10 & 11 if taxpayer taking the standard deduction. Can anyone explain this to me?

ProSeries Professional

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abctax55Answer

Level 15

Because that is what the instructions tell you to do?

Lines 9, 10, and 11
Use lines 9, 10, and 11 for business use of the home expenses that would have been deductible as a personal expense if you had not used your home for business. These expenses include certain casualty losses, mortgage interest, mortgage insurance premiums, and real estate taxes.
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.

HumanKind... Be Both

abctax55Answer

Level 15

Because that is what the instructions tell you to do?

Lines 9, 10, and 11
Use lines 9, 10, and 11 for business use of the home expenses that would have been deductible as a personal expense if you had not used your home for business. These expenses include certain casualty losses, mortgage interest, mortgage insurance premiums, and real estate taxes.
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.

HumanKind... Be Both

rbynaker

Level 13

It's only relevant if there's a loss. You CAN create or increase a loss with deductions that would "otherwise be allowed" (i.e. on Schedule A for your personal residence). So entering things in the "top" section allow you to create a loss with those deductions. If you're taking the standard deduction (or perhaps state taxes are limited to the $10K) then the expenses that would not "otherwise be deductible" go in the bottom. Still deductible as a home office expense if there's a profit but NOT allowed to create or increase a loss.

Rick

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