[Hidden-tech] home office deduction question

[Town Websites]

I'd get a confirmation before assuming any advice here is good about home office deductions, but I think the likely consequence if you depreciate part of the house you claim for home business, you have to keep track of that and declare the total amount depreciated over the years as a capital gain when selling the house (same as if you were renting the space and depreciating it).  Skipping the last year wouldn't change that.

Best bet may be to separate utility costs for the business use and pay it from your business checking account.  Anything you do will need meticulous records and in many cases the IRS expects you to clearly differentiate business from personal use, so the time spent tracking the expenses might not be well compensated especially if you take the extra audit potential into account. YMMV!

Charlie


 
-----Original Message-----
From: hidden-discuss-bounces at lists.hidden-tech.net [mailto:hidden-discuss-bounces at lists.hidden-tech.net] On Behalf Of shel at frugalfun.com
Sent: Monday, April 30, 2012 5:10 PM
To: tomadams at gmail.com; hidden-discuss at lists.hidden-tech.net
Subject: Re: [Hidden-tech] home office deduction question

   ** Be sure to fill out the survey/skills inventory in the member's area.
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I'm not a  an accountant and you should verify this--but what I rmemeber being told is if you don't take the deduction the eyar before you plan to sell, you should be OK.

Original Message:
-----------------
From: tom's gmail tomadams at gmail.com
Date: Mon, 30 Apr 2012 12:03:57 -0400
To: Hidden-discuss at lists.hidden-tech.net
Subject: [Hidden-tech] home office deduction question


   ** Be sure to fill out the survey/skills inventory in the member's area.
   ** If you did, we all thank you.


Hi fellow work-at-homeers,

Is there a down-side to claiming a home office space as a tax deduction? 

Specifically wondering how it affects the value of our home over time? 

our accountant has suggested that it's not always a good idea... but we can't figure out her reasoning & she'll charge us more for giving us a clearer answer...

any info would be greatly appreciated. 

Regards,

Tom Adams
413.575.9707 • Williamsburg, MA
(from my virtual office/iPhone)

Director/Owner:
www.ReelifeProductions.com &
http://Folktography.zenfolio.com
http://me.com/ReelifeProductions

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