[Hidden-tech] home office deduction question

[ussailis at shaysnet.com]

I believe some of the issues come from the way a home sale is taxed now.
The last time I took a RE course, I was told that you could excuse 250K
from taxes, if you "lived" in the dwelling for 3 out of the last 5 years.

The key word here is "told." As in NOT from an accountant. And it was two
years ago.

Since I have never done this I don't know if the 250 K is above the "basis"
of the property, or the total sale price.

The term "basis" I got from renting out my house many years ago. At that
time one took a "loss" against rent based on the depreciation of the
dwelling (land doesn't depreciate, according to the IRS). The "basis" of
the dwelling is it's purchase price less depreciation.

Which reminds me, you will need a "value" for the dwelling before you start
this process. That is get a note from a qualified appraiser that says what
the land and dwelling are individually worth. You should have this for your
house insurance also. Land doesn't burn.

In the dim past you got to only write down your cash in by a % of the
dwelling space + a % of utilities, that percentage is based on the square
footage of the office size and dwelling size. What can you do now?? See an
accountant.


Jim Ussailis
jim at nationalwireless.com

PS You probably guessed that I have a RE license. So would I see an
accountant? You betcha I would!! Long before I planned to take this
write-off.
Original Message:
-----------------
From: shel at frugalfun.com shel at frugalfun.com
Date: Tue, 1 May 2012 07:46:15 -0400
To: shel at frugalfun.com, hidden-discuss at lists.hidden-tech.net,
tomadams at gmail.com
Subject: Re: [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.


Because, as the OP was concerned about, the IRS recoups thevvalue of the
deduction at the sale, 
thus increasing your tax substantially--but not if you skip the last year.
If you've been claiming it for a 
long time, it might be a good idea to take a picture of some non-business
actvity being conducted in 
the space so you can prove you didn't qualify for it that last year.

Again, not an accountant--verify this with someone who has some expertise.

Original Message:
-----------------
From: Edbride-PR Ed at edbride-pr.com
Date: Mon, 30 Apr 2012 21:04:03 -0400
To: shel at frugalfun.com, tomadams at gmail.com,
hidden-discuss at lists.hidden-tech.net
Subject: Re: [Hidden-tech] home office deduction question


This seems like rather odd advice. Why would that make a difference? 

I have sold two houses where I claimed an office, with no repercussions. 

Ed
----- Original Message ----- 
From: <shel at frugalfun.com>
To: <tomadams at gmail.com>; <hidden-discuss at lists.hidden-tech.net>
Sent: Monday, April 30, 2012 5:09 PM
Subject: Re: [Hidden-tech] home office deduction question


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.



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