Claiming the Home Office Deduction when you have a net loss for the year?
Does anyone know if you have a net loss for the year, do you claim your home office deduction that year and carry it forward, or do you "not claim" it, hold on to the info, and claim it when you have a net profit for the year?
I do my own taxes. This year we really expanded our rental business and I set up and used a home office; I have all the required documentation to claim the deduction... just confused about if I actually enter everything this year, or hold onto it and wait for a profitable year.
I have the book "Every Landlord's Tax Deduction Guide" and it says:
"If you have enough rental income to take a home office deduction this year, report the amount (up to the profit limit) on line 18 of your Schedule E. If you don't have enough rental income to take a home office deduction this year, write nothing in your Schedule E. Keep your record of your home office expenses to use in a future year when you have more rental income."
In another place in the book it says "Whether or not your business is making money, you should keep track of your home office expenses and claim the deduction on your tax return."
The two statements seem to be contradictory to me. Any insight? Thanks!