Do you claim a home-office deduction?
Are you thinking of selling your home and buying another?
If you are, you’re in luck. You see, if you know what you’re doing, you won’t have to pay the unpleasant recapture tax. And you can increase the tax basis in your replacement home.
Which means you win two ways.
Want to find out more? Read my new article titled Tax Tips: Beat the Recapture Tax on Your Home Office!
Three ways our fact-filled article can help you:
- We’ll explain how IRS Revenue Procedure 2005-14 works to your advantage. This easy-to-use procedure combines the tax-favored Section 1031 tax-deferred exchange and the Section 121 home-sale exclusion rules. The result? You can avoid taxes three ways and defer taxes on depreciation recapture related to the office or rental part of your home. You’ll get all the details when you read the full article.
- We’ll tell you why working with an “exchange intermediary” is so important. To get tax-favored treatment, you can’t go it alone. You’ll need to engage an exchange intermediary who can create the paperwork needed to sell your current principal residence and buy your replacement residence. It’s easy to find a qualified exchange intermediary as we’ll explain when you read the full article.
- You’ll get the lowdown on home-office location rules. Is your home office located inside the walls of your dwelling unit? Or is it (for example) outside in a nearby guest house? These are important questions because the IRS expects you to follow its detailed home-office location rules carefully. You’ll get the whole story when you read the full article.