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 fact-filled article can help you:
- We’ll tell you the important difference between the words “allowed” and “allowable.” You may have two different depreciation amounts to consider when you calculate your recapture tax and gain on sale. “Allowed” is what you actually claim on your tax return. “Allowable” is what you should have claimed on your return. All will be explained when you read the full article.
- You’ll learn when to use the allowable depreciation amount. You’ll need to know this when you calculate your recapture tax. If you took zero depreciation during that time, you’ll pay zero recapture tax. You’ll get all the details when you read the full article.
- We’ll tell you what proof you need to come up with for Uncle Sam. The fact is, your tax returns provide sufficient proof to the IRS so you won’t get slammed with a recapture tax bill. You’ll get the whole story when you read the full article.