Would you kindly help me to figure this one tax question out?

Question

A) Got a house and mortgage is paid off completely. B) Got an office in that house. It is the ONLY office that I got. C) Need a room to do business in but decided not to rent room from another guy but use a room in my home for my business as it saves commute and gas and is better for the environment. D) If I would not use the room for business, I could rent it or let family use it. E) Can I rent it to myself? F) How can I deduct this room from the taxes? G) If I deduct it and sell the house one day, can I still sell it as private home or do I have to sell it as business house due to that I had a office inside and deducted something?

Thanks in advance for any advice you can spare.

Regards, Gene

Phil Marti · Accepted Answer

See IRS Publications 587 and 523Phil MartiClarksburg, MD

parrisbraeside · Answer

AnswersE) Yes, but why? You'd just have to prepare Schedule E then with thesame issues as Schedule C.F) See EG) You will have to handle the recapture of the allowed/allowabledepreciation later.You will likely find that your situation is one best referred to a taxpreparer who is familiar with home-based business issues.

Seth · Answer

You can sell it as anything; it won't matter to the buyer whether you had an office in one room (other than physical wear pattern and the like). The taxes on sale will differ; the business space is depreciated, has that recaptured, and gain is taxable, while there are large exemptions for the residential part.

Seth

Gene E. Utterback, EA, RFC, AB · Answer

Not a real reply, just a note - This is NOT me!Gene E. Utterback, EA, RFC, ABA

Gene · Answer

Yes, I am another Gene.Thanks.========================================= MODERATOR'S COMMENT:- we didn't think so, but thanks for avoiding any confusion.

Gene E. Utterback, EA, RFC, AB · Answer

SnippedBut we look so much alike here !Gene E. Utterback, EA, RFC, ABA

Would you kindly help me to figure this one tax question out?

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