Home Office

[Kram BergGold]

Taxpayer has home office located in his second home. This is the only location for this business. The business has negative income before the office deduction. Is this office treated like a home office in a principal residence, i.e. no deduction for office is allowed in current year, or do home office rules only apply to principal residence?

[JCH]

I've never run into this situation of an OIH not being in the principal residence. However, if the business income is negative, I would say the OIH expenses still are valid, but would carryover to the next year.