When you do your taxes, do you claim the home-office deduction?
If the answer is “yes,” and you’re not claiming depreciation as part of that deduction, you could be making a big mistake.
Oh, sure. It’s perfectly legal to take a pass on the depreciation, but why do that? If you don’t claim depreciation, you’re probably losing after-tax cash!
If you want to learn which rules apply when you don’t claim depreciation as part of your home-office deduction (and why that’s probably a poor decision), read my new article titled Tax Tips: How to Claim No Depreciation on Your Home-Office Deduction?
Three ways our fact-filled article can help you:
- We’ll explain the implications of the “Recapture Tax.” If you don’t claim depreciation, it’s likely that the recapture tax (the tax on unrecaptured section 1250 gains) will be less than the tax benefits you receive. This means you’ll likely lose money if you don’t claim the depreciation deduction. We’ll explain all this and provide specific examples when you read the full article.
- We’ll tell you a great reason to claim depreciation. The fact that you don’t claim depreciation on your home office doesn’t disqualify your deduction or the status of the office as your principal place of business. But you know what? Not claiming depreciation looks really weird on your tax return and weird tax returns catch the IRS’s eye. A bad thing! You’ll get the details when you read the full article.
- You’ll learn why Section 1250(b)(3) is so important. This section of the tax code outlines the proof you’ll have to provide to stay out of trouble if you are not claiming depreciation on your home office. If you’re not claiming depreciation, you can meet the rules and be legally fine… but you’ll be losing money! We’ll explain this in easy-to-understand language when you read the full article.