8829 Depreciation Carryover

[GTS1101]

My client is no longer doing her cleaning business so she is no longer using her space in her home for business. She had some carryover depreciation from 2010 and carryover operating losses from 2010. She has no income or expenses in 2011. Business is closed. Husband is now using the home office space for his business. Can she claim the unused depreciation in the year the business closed or is the carryover depreciation lost and cannot be claimed?

Thanks!

GTS1101

[JG EA]

The deduction allowed to be carried over is limited to the net income of the business. It continues on even if the business moves to another home. But if the business doesn't continue then neither does the deduction.

But on the bright side, she won't have to deduct that depreciation if they sell.