If you have no taxable income, should you claim the home-office tax deduction?
Answer: yes. Even with no taxable income, you have two for-sure tax benefits from the home office, and you likely have a third benefit.
By claiming your home office as your principal place of business when you have no business income for the year or perhaps a business loss for the year, you gain three tax benefits:
- Your Schedule C-denied home-office deductions that produced no tax benefits this year carry over to next year, where they offset your business income.
- You no longer commute from your home to business stops. Instead, all such trips produce business mileage.
- Any business loss apart from the home office can create a net operating loss that you can apply against next year’s taxes.