Question

home office deduction exceeds business income

Forum|Forum|3 years ago
January 30, 2023
1 reply
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TT shows that my home office deduction (~$200) exceeds my business income (~$100). Is this possible? I thought that allowable home office deduction for the current year is always adjusted to be less that business income for the current year. Am I doing something wrong?

DaveF1006

It depends. To clarify, is the (-$100) the final result after taking the home office deduction in consideration?

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J

jason1578Author

Yes, this is correct. The (-$100) the final result after taking the home office deduction in consideration. There no other deductions.

JohnB5677

You cannot claim more than the gross income of your business in a tax year. For instance, if your gross income is $100, then you cannot deduct $200 as home office expense. So, your business income can have a deduction limit.

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