Southern Mama 01:15 PM 02-04-2013
Hi there! I hope I can explain this properly. I opened November 1st of this year. I only have about $1100 in income and I have paid out more than that in supplies and with my T/S ratio for utilities, rent, etc. Since I am technically "in the negatives" and am completely overwhelmed trying to log all of my expenses through Turbo Tax, should I skip putting in all of my expenses and go this other $1500 deduction route? If so, how do I do that in Turbo Tax? Thanks again for all of your help!
Southern Mama 01:18 PM 02-04-2013
Oops, and after closer evaluation, I see that I CAN still claim these other expenses on schedule C. But because I am in the negatives anyway, is it a waste of time to document and claim all of those other expenses?
TomCopeland 01:21 PM 02-04-2013
You can't use the $1,500 home expenses rule for 2012. It begins in 2013. You want to continue to enter all your expenses in Turbo Tax, even if it increases your loss for 2012. Although your house expenses can't create or increase your loss on Form 8829, you can roll over unclaimed expenses from 2012 and claim them on your 2013 tax return. Turbo Tax should automatically roll over these expenses. In addition, any loss you can claim in 2012 will reduce any other income your family had.
Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register:
http://events.r20.constantcontact.co...&llr=yatrx4cab
Southern Mama 09:06 PM 02-04-2013
Ahh! Thanks! I missed that altogether! Yikes!