Discussion Archives:HOME OFFICE W/O R/E & MORT INT

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Discussion Forum Index --> Advanced Tax Questions --> HOME OFFICE W/O R/E & MORT INT


Discussion Forum Index --> Tax Questions --> HOME OFFICE W/O R/E & MORT INT

MRBARRYTAX (talk|edits) said:

4 April 2008
Can my client deduct a home office expense just using auto,utility, etc. expenses without using real estate taxes and mort interest since the client zeros out without these, and therefore, these can be used fully as a sch A deduction?

Wakerles (talk|edits) said:

4 April 2008
The percentage of real estate taxes and mortgage interest should be allowed as a home office deduction even if their income goes below zero. They would be limited however on the utilities, insurance, depreciation, etc if there was a business loss - then this would carry forward.

I would normally put the real estate tax and mtg interest on the 8829 since it will offset business income and in the state I'm in (MI), the state income is based on AGI. If you put everything on Sch A, you'll likely get no state benefit for this deduction (depending, of course on your state).

If you'd prefer to put the mtg and taxes on Sch A though, I don't see anything wrong with it...

MRBARRYTAX (talk|edits) said:

4 April 2008
thank you. but i am concerned as to the legality of using the abovementioned deductions, and filtering out r/e and mort int. to the sch A?
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