If you have a home office, be careful! IRS Form 8829 gives you the impression that you should only use the gross-square-footage method for computing your home office deduction. Not true! We’ll show you a way to compute your deduction that’s always superior to the gross-square-footage method. Want to find out how you can legally wind up with more money in your … [Read more...]
Home Office
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Increase your office depreciation rate by 42%
They say the key to success in real estate is “location, location, location.” But location is also important when it comes to your office. If your office is in your single-family home, you have to depreciate that office using the 39-year depreciation method. But if you locate your home office (or other office) in a duplex or apartment building you own, you might qualify … [Read more...]
Should you claim zero depreciation on your home office?
Do you claim the home-office deduction? If you do, do you claim zero depreciation so you can avoid the recapture tax? If the answer is “yes,” you may or may not have made the right decision. How can you find out if you’re handling things the right way? Easy. Read my new article titled Tax Tips: Home-Office Deduction: Should I Claim Depreciation? Three ways our … [Read more...]
How to avoid the “double tax” whammy!
Have you been claiming zero depreciation for your home office so you can avoid the depreciation recapture tax? That may be a big mistake. You see, the IRS has a rule that can force you to pay the recapture without giving you the actual depreciation deduction. Not good. Because if this happens to you, you’re going to pay a double tax. Want to avoid that nasty problem? … [Read more...]
Here’s a great idea for rental property owners!
If you’re a rental property owner you’re probably aware of two important facts: FACT #1: Your rental property provides you with a nice tax shelter when you deduct your losses against your other income. FACT #2: In order to deduct those losses, you have to pass Uncle Sam’s 750-hour test. What you might not know is that your home office can help you pass that important … [Read more...]