Who’s afraid of the big bad home-office deduction?
You shouldn’t be. Especially if what’s worrying you is depreciation recapture when you sell the home where your home-office is located. The truth is, there’s no reason to fear depreciation recapture when you claim a valid home-office deduction.
You see, the simple fact is, depreciation tax benefits typically exceed recapture taxes. So don’t avoid the home-office deduction because of the taxes you fear you’ll pay when you sell your home.
The bottom line? Don’t believe the many myths about the home-office deduction. Get the facts when you read my new article titled Tax Tips: Home-Office Depreciation Deductions Can Beat Recapture and Capital Gains Taxes.
Three ways our fact-filled article can help you:
- We’ll explain why the depreciation recapture tax is a paper tiger. To help you understand the big picture we’ll provide specific examples that will make things crystal clean. If you’ve been concerned about claiming the home-office deduction, I urge you to read the full article.
- We’ll show you how to avoid paying the capital gains tax on the sale of your home. If you want to legally avoid paying the tax, you can use the $250,000 home-sale exclusion ($500,000 if you file jointly) and not pay a penny to the IRS. Want the details? Read the full article.
- We’ll explain why dying can save you a lot of money. Sure this is a super-lousy way to avoid taxes, but it is a way to make your heirs happy. You see, when you die, your home-office avoids both the capital gains and the recapture taxes (depending on what exclusions are in place). And your home-office likely avoids the estate tax as well. We’re dying to tell you when you read the full article.