Schedule C is already negative. How do I exclude Home Office expenses from current year, but carry forward to future?

[Just-Lisa-Now-]

Some of the expenses on OIH (mort int and prop taxes I think) will be allowed and create a negative on Sch C....it should automatically carry forward any unused portion...look down at the very bottom of the 8829 for the carryover amount.

[rbynaker]

You can't rely on the software for this.  If they did NOT itemize then ALL of the OIH expenses carry forward.  If they did itemize then you get to deduct the OIH share of the mortgage but maybe not all of the taxes if they hit the SALT cap.

At least that's my understanding.

[natez]

Perhaps I'm not asking my question correctly. My concern is that OIH should not be used to create or increase a Schedule C loss. How do I modify the "allowable" OIH expense to avoid counting that expense on Sch C?

[TaxGuyBill · Accepted solution]

It is automatic.  You don't need to do anything.

If you are not itemizing, you need to put the mortgage interest and real estate taxes on Lines 16 and 17.

If you are itemizing, you enter the mortgage interest and real estate taxes on Lines 10 and 11, and then they ARE allowed to increase the loss on Schedule C.

[natez]

Thank you!