In-home office tax rules change for the better

Discussion in 'Business Operations' started by DLS1, Jan 31, 2003.

  1. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Below is from clarkhoward.com.

    In-home office tax rules change for the better
    Do you run a business out of your home? Do you work for a company but your office is in your home like many outside sales reps? People who do have been completely befuddled by the tax rules regarding deducting part of your home as an “in-home office.” The in-home office deduction has had more lives than a cat when it comes to what the tax rules are. The issue got even more confusing when the law was passed making it possible for you to sell your home and pocket all the cash from the gain tax-free. If you deducted part of your house as a part office, when you put your house on the market were you subject to paying tax? Previously the answer was “yes.” Now, the IRS is saying, “no.” You are going to be able to deduct the cost of your in-home office, and you won’t have to pay a “recapture tax” when you sell the home. So, basically, people who have a home office are going to have their cake and eat it too. It will take a while for this news to filter through the accounting industry, but you’ll want to talk with your CPA about it. If you like to handle your taxes on your own, you can find out all about it by going to irs.gov and read Publication 587. And, you are on way!
     
  2. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    thanks much...I suggested we all share these little things in one big "income tax tips" thread...I wont start it because I'm new at this tax game.....but maybe one of you can....we can put all we learn in one thread ..i think that would be enormously helpful at this time of year...just an idea
     
  3. Paying tax on the depreciated portion has always been the biggest draw back to the deduction. Will be interesting to read the change.
    Thanks.
     
  4. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    Holy crapoly batman! This is the reason my wife and I never took the home office deduction. Looks like Uncle Sam may be getting a little less from us this year!
     

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