<prompt> Human: Im 23, live in the US Maine, and my annual income is about 30,000. Lets say that I make this company, get all the proper paperwork filed, etc. I continue working at my regular job, and also use this newly-created company as a second job. Lets also say I expect to make less than 1,000 in profit from this company after a year. In this scenario, after a year, can I still use this company for my tax deductions? Can I write off my home use as business expenses? I dont understand what would prevent this. Assistant: No. Tax deductions for houses used in businesses are very small, for just this reason.Human: I heard that they were actually pretty big: At least, 2,600 in cash is big for me...Assistant: Deduction cannot exceed gross income from business use of home less business expensesI think thats going to trip you up. If your net gain between business income v tax savings is still zero, whats the point?Human: Im going to repost this because its important and it got lost in the thread:For the record, one reason why Im confused: I DO want to deduct more than the business makes. The reason I think its possible is because in this link:Nowhere does it mention the businesss profit or anything like that. It only mentions the value of the house. So which is correct and which is wrong?  <response>: The reason you dont get to deduct more than you make is to prevent people like you from doing exactly what you want to do. Its an arbitrary restriction, not a logical one.I read your link. I quoted from your link. Now look at the IRSs link:Gross income limitation. Your deduction for businessuse of the home is limited to an amount equal to the grossincome derived from the qualified business use of thehome reduced 