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No business income, no home office deduction: Wrong.

Reblogger Bill Salvatore - East Valley
Real Estate Agent with Arizona Elite Properties SA545073000

Good information here. bill 

Original content by Kelly Green-Krist 34463

You may have heard you cannot claim a home-office deduction without business income. That’s not accurate, as I explain below.

Points to Consider

  • Claim business deductions with no business income. Even if your business did not generate income this year, you should claim all business deductions. Such deductions might create a net operating loss (NOL), which would carry forward to offset future taxable income.
  • Claim the home office with no business income. Claim the home-office deduction even with no business income. The home-office expenses not allowed this year carry over to future years in the separate home-office deduction bucket. And this gets even more important when you consider business miles.
  • Loss of business miles. Trips from your home to many business locations are personal miles if you do not deduct your home office as your principal place of business. Establishing that “principal place of business” is easier than it sounds.
  • File a tax return. Without business income, you may be exempt from filing a tax return. Forget that. File a return. You need a filed return to claim the benefits above.

Action Steps

  • Document your home office. Ensure you have appropriate documentation that proves your home office is your principal place of business.
  • Claim all possible deductions. Even in a loss year, claiming all possible deductions is essential.


Your home office can provide significant tax advantages, even when your business income is low or non-existent. Make sure you position yourself to take full advantage of these benefits now and in the future.

Green Krist, CPA  specializes in assisting taxpayers with IRS and North Carolina Department of Revenue issues in the greater Raleigh, North Carolina area.

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s really important to get all those ducks in a row before you jump into the pond  headfirst.


May 19, 2024 11:32 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Bill,

I missed this post so thank you for the re-blog. Your home office can provide significant tax advantages, even when your business income is low or non-existent.

May 20, 2024 05:58 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Bill, for this reblog selection.

Have an outstanding week.


May 20, 2024 07:58 AM