Lots of confusion on this issue.
Abigail - When you itemize you can count all of your charitable contributions, medical expenses, personal portion of property tax and mortgage interest, and more. It's the total of these expenses that determine whether or not you are better off using the standard deduction or itemize. If you take the standard deduction you cannot deduct charitable contributions. You are better off taking the standard deduction only if the total amount of your itemized deductions are less.

Legomom - If you use the standard deduction you will get an additional tax benefit from your business by being able to claim the business portion (t/s%) of your property tax and mortgage interest on Form 8829. This is a tax benefit from owning your home. Now, even if you itemize you can still claim these same house expenses on your business tax form (Form 8829). In addition, no matter whether you itemize or not, you can always claim house depreciation as a business expense. I can't answer your specific question because I don't have all the facts. But I can say that when you make more money you pay more taxes. Therefore, you may get less money back after filing your taxes but you may also have more money in your pocket because you made more money.

Jewels - If you do show a loss you cannot have your house expenses increase a loss. Therefore, you would roll over your house expenses from one year to the next. If you show a profit the next year you can deduct these carry over house expenses to reduce your profit.

Legomom - It's still worthwhile to keep records of your house expenses because they may be deductible in a later year if you have a loss this year.

Kendallina - Yes, your federal taxes could be in the 20-15% range, depending on all your family circumstances.

Legomom - Claiming the standard deduction has nothing to do with limiting your profit from your business. Your business expenses always include the business portion of your property tax and mortgage interest. If you use the standard deduction you don't directly claim any of the personal portion of these two expenses because they are deemed to be included in the standard deduction amount. If you use the itemized method then you get to deduct the personal portion of these two expenses. You determine which method to use based on your family's expenses. Either way, your business gets the same deductions for your home.

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