Re: home office deduction

I don't think other people using it should change the fact that you would
still need it for your job.



"RaeMorrill" <RaeMorrill@xxxxxxx> wrote in message
news:s56Ff.5009$1N5.4547@xxxxxxxxxxxxxxxxxxxxxxx
Since when does the gummint operate under any kind of common sense. I
probably COULD take my full Road Runner bill, but I don't because my DH
also uses it for his computer


Su wrote:
But it's all connected. Each relies on the other. I can't have the DSL
line unless I have the basic phone service.

You'd think the government would be more supportive of this considering
the fact that I'm paying $120 with the phone/DSL/AT&T setup working 24/7
than I am paying $292/month (more or less) working only 7 hours a day.



"RaeMorrill" <RaeMorrill@xxxxxxx> wrote in message
news:Go4Ff.4710$1N5.2065@xxxxxxxxxxxxxxxxxxxxxxx

I'm sure you can deduct the DSL, etc, but not the basic part of the phone
bill - legally. I deduct a portion of my Road Runner, and that's billed
as part of the cable TV package the way we get it, but I can't deduct the
HBO

Su wrote:

I'll take it one step further ... a basic phone line ($25/month) is
required in order to get the DSL line ($59.99/month), and the DSL line
is required in order to use AT&T CallVantage ($35/month), which is my
carrier unlimited long-distance (total $119.99/month for all three).
Without AT&T CallVantage, I would need the a second phone line
($25/month) and also use to use a service like OneSuite, which is $0.029
cpm (x 60 minutes = $1.74/hour x 7 hours/day = $12.18/day x 22
days/month = $267.96 + $25 = $292/month total).

I'll take what's behind door #1.



"RaeMorrill" <RaeMorrill@xxxxxxx> wrote in message
news:c_VEf.6139$5Q3.1902@xxxxxxxxxxxxxxxxxxxxxxx


http://www.powerhomebiz.com/vol22/taxdeduction.htm

Certain expenses are deductible whether you use a home office or not.
Take telephones, for example. The rule is that the basic local
telephone service change, including taxes for the first telephone line
in your home is a nondeductible personal expense. However, if you do
business long distance phone calls on that line, you can deduct it as
part of your business expenses. If you get a second phone line in your
house exclusively for your business, you can deduct this as a business
expense.



Laura Gibson wrote:


You can deduct up to 2 phone lines. I deduct 1 cell and 1 home line as
I receive faxes, etc, on this line also. Since the kidlings are gone,
there is nobody on the phone anymore during my working hours except
me.

Laura

"RaeMorrill" <RaeMorrill@xxxxxxx> wrote in message
news:itTEf.6131$5Q3.4271@xxxxxxxxxxxxxxxxxxxxxxx



It adds up - you can take (I believe) percentage of all household
expenses such as heat, electric, maybe even painting house. Phone I
don't think because I believe you cannot deduct primary phone line as
biz expense (I have a specific biz line I can deduct 100%of).

That's 140 square feet. 270 sq feet would be 10% so that's a little
less than 5%?

Su wrote:



Hmmm ... I didn't think much about size being an issue. Boy, this is
going to be tough to figure out. What about 10 x 14 in a house that
is 2700 sq ft (upper and lower floors)? Is that worth claiming the
deduction?



"Maureen" <maureen.galvin@comcastdotnet> wrote in message
news:tLadnUvGW53RTX7enZ2dnUVZ_t6dnZ2d@xxxxxxxxxxxxxx




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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