Home Office Deduction?

Discussion in 'Professional Trading' started by EqtTrdr, Mar 19, 2006.

  1. If under "trader status" you complete Schedule C and itemize all your expenses, including home office deductions.... and you report ZERO income on the Schedule C, the "home office portion of your business did not show a profit"

    Thus any unallowed portion will be carried over to future tax years.........

    This makes no sense because I want to apply the home office deductions against capital gains reported. I don't need them to carry over, but since the Schedule C reflects "zero income" then how can you deduct expenses from zero?

    Im confused and reading the IRS website was of no help :)

    Thanks for any input here...:confused:
  2. Ebo


    If you are filing with MTM accounting, "Trader Status", Capital Gains/Losses are treated as ordinary gains losses.

    So wouldn't Schedule C, Ordinary expenses, offset the income?

    I am not a CPA but I am fairly sure this works out that way.

    If the expenses exceed the income, you can file a NOL, Net operating loss.

    Check Greencompany's website for tons of FREE help!
  3. Thanks for the help :)

    Maybe I stated incorrectly the "trader status" idea. I am not electing MTM at this time so there is no ordinary income, only capital gains/losses.

    Will check out that site you posted for more info!!

    thanks again!
  4. Ebo


    No Problem!

    I filed a beautiful NOL carryback a few years ago and got a nice check.

    Ya gotta love creative accounting.

    Be careful with writing too much "Home Office" off.
  5. they never messed with you on a nol carryback loss?many times when you ask the irs for money back they balk
  6. Ebo


    The check cleared and never bit me in the ass.
    I paid them way too much tax in 1999 - 2000!

    My CPA is top notch.