I'm guessing she is referring to the issues involving the capital gains basis at sale given that you depreciate as part of the deduction. I searched on 'home office capital gains sale", and this was the first hit and seems relevant: ihttp://workathomemoms.about.com/od/taxes/a/homeoffquestion.htm On Mon, 30 Apr 2012 20:16:11 -0400, Karl Hakkarainen <kh at queenlake.com> wrote: > Our financial adviser has indicated that home-office deductions are often > flags for audits because there have been so many suspect claims. It depends > a lot on what kind of business you have, whether you're meeting customers > at your home-office, and a bunch of other stuff. The IRS has a page > home-office deductions: > http://www.irs.gov/newsroom/article/0,,id=108138,00.html. After reviewing > the IRS material and talking with our adviser, we decided not to take the > deduction. > > The real estate folks on this list can comment about house valuations. > > On Mon, Apr 30, 2012 at 12:03 PM, tom's gmail <tomadams at gmail.com> wrote: > > > 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.