Home Office Expense Carryover, Business Closed

[Patrick Michael]

Never ran into this and after reading IRS pubs and searches still can not find an answer.  Client had a home office but was unable to claim $2,505 in operating expenses and none of the depreciation due to profit limitations.  She closed the business and sold the house in 2020.  She is able to take the Sec 121 exclusion and from what I read she does not have to reduce the exclusion amount since she was never able to use the depreciation.  What happens to the carryover amount?  Does she loss it or can she use it in 2020?

Thanks.

[BulldogTom]

It died with the business.   

Tom
Modesto, CA

[Patrick Michael]

14 minutes ago, BulldogTom said:

It died with the business.   

Tom
Modesto, CA

That's what I suspected.  Thanks for the confirmation.