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    1 Reply Latest reply on Dec 27, 2008 9:54 PM by LUCKIEST

    The old "Home Office" deduction question

    Bob949 Newbie
      I have a "small" home-based business, under $10K a year. (The reasons for setting up my LLC are long and besides the point for this discussion.) For the last 5 years I have been enjoying the deduction for my home office. It really helps with offsetting the income I get shooting wedding videos for various photography studios. Originally, I read up on the IRS rules on home offices and have been complying with them. My question concerns the aftermath of these deductions. What happens when I close the business or sell the house? I had assumed (incorrectly, according to a friend of mine) that whatever I deducted all these years would simply be applied against the sale price. And if we were below the threshhold of capital gains ($500,000 for a married couple) then it would be a non-event.

      I would appreciate if someone could give me information about this?