Re: home office deduction

Yes, that is what my account explained to me also. I use to take the home
office deduction when I had an office worth deducting. But now in my place,
the square footage, etc. just doesn't make it worth my while any longer.

Maureen

"Su" <no.name@xxxxxxxxxxx> wrote in message
news:7YPEf.15831$s9.3333@xxxxxxxxxxxxxxxxxxxxxxxxx
Just to make sure I "get it" ... it's okay to claim the home office
deduction UP UNTIL two years before a house is sold. Once you reach that
point, stop the deduction. Right?


"Laura Gibson" <transpec3@xxxxxxxxxxx> wrote in message
news:WcadndGNNrQ6V37enZ2dnUVZ_sqdnZ2d@xxxxxxxxxxxxxx
I do take the home office deduction. My accountant warned me long ago
about the two-year dealie, so no spur of the moment buys for me...Have
lived in the same house for 29 years though.

Laura

"Su" <no.name@xxxxxxxxxxx> wrote in message
news:DJPEf.15830$s9.12136@xxxxxxxxxxxxxxxxxxxxxxxxx
I got this from www.irs.gov

Paying Taxes on the Home Office Share When You Sell Your Home

When you sell your home, the home office may be considered business
property, and that portion of your gain on the sale may be taxed,
because business property does not qualify for exclusion from income
tax, as a personal residence gain. This situation can occur if you use
your home for business in the year of the sale, or if you don't meet the
"two-year test" (in which 100% of the residence was used as your main
home for an aggregate of 730 days in the last five years). If this
applies to you, you must treat the sale of your home as two
transactions: one as the sale of business property and the other as the
sale of your personal residence. The sale of business property is a
taxable transaction that you must report, and unfortunately, any gain
that results isn't eligible for the $250,000 home sale gain exclusion.

If you own your home, any depreciation taken after May 6, 1997 must be
"recaptured" at the time you sell your residence for a profit, which
means that the depreciation must be taxed at a special 25% rate. The
rest of any gain that you have from the sale of the business portion of
your home will generally be taxed at 20% (assuming you owned the home
for more than a year).



So, according to this there's no problem claiming the home office
deduction until a year or two before you sell your home. After that
time, you should stop.

What's the general concensus here about claiming the home office
deduction? Do you do that? Have you sold a home and had to repay the IRS
any money?








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Relevant Pages

  • Re: home office deduction
    ... deduction UP UNTIL two years before a house is sold. ... Paying Taxes on the Home Office Share When You Sell Your Home ... your home for business in the year of the sale, or if you don't meet the ... one as the sale of business property and the other as the ...
    (sci.med.transcription)
  • Re: home office deduction
    ... office deduction when I had an office worth deducting. ... When you sell your home, the home office may be considered business property, and that portion of your gain on the sale may be taxed, because business property does not qualify for exclusion from income tax, as a personal residence gain. ...
    (sci.med.transcription)
  • Re: home office deduction
    ... home office deduction when I had an office worth deducting. ... Paying Taxes on the Home Office Share When You Sell Your Home ... because business property does not qualify for exclusion from income ... your home for business in the year of the sale, ...
    (sci.med.transcription)
  • Re: home office deduction
    ... It adds up - you can take percentage of all household expenses such as heat, electric, maybe even painting house. ... office deduction when I had an office worth deducting. ... When you sell your home, the home office may be considered business property, and that portion of your gain on the sale may be taxed, because business property does not qualify for exclusion from income tax, as a personal residence gain. ...
    (sci.med.transcription)
  • Re: home office deduction
    ... office deduction when I had an office worth deducting. ... as a personal residence gain. ... your home for business in the year of the sale, ... one as the sale of business property and the other as the ...
    (sci.med.transcription)