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A sole proprietor with a tentative loss may deduct which of

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the following for qualified business-use-of-home...
a sole proprietor with a tentative loss may deduct which of the following for qualified business-use-of-home expenses:mortgage interest
depreciation
rent
utilities
Submitted: 1 month ago.Category: Tax
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Answered in 14 minutes by:
10/4/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 month ago
Mark Taylor
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Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 month ago

This would depend if you owned or rented the home. If you owned the home you would need to know the business use square footage and the total square footage. You would then be able to deduct this portion of mortgage interest, repairs, property taxes, utilities, and depreciation. If you are renting the home, you would take the business use percentage and apply this to rent, insurance, and utilities.

The home office deduction is limited by the net income of the Schedule C. If there is a loss, the business use of home expense would carry forward to the next year.

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Customer reply replied 1 month ago
I agree with you but the question wants to know if there is a tentative loss which of the above expenses can still be deducted.
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 1 month ago

They are deductible but are not currently deducted. The home office expense would carry over to the next year.

The home office expense is limited to the net income of Schedule C. If there is a loss, you would not be able to deduct the home office expense. You do not lose the expense, it just carries forward to the next year.

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