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Question for the Money Doctors

Question submitted on Jan 24, 2013.

Question

If I take a home office deduction, do I have to depreciate my home? Thereby, reducing my gain by sale of the home years later?

Answer

To claim a deduction for an office in your home you must use the portion of your home regularly and exclusively as the principal place of business carried on by the taxpayer. One of the business related expenses that you are entitled to deduct is the allowable depreciation expense. The deduction of this depreciation expense would result in a greater gain when your home is ultimately sold. Because there are limits on the deductibility of home office expenses, you should contact a knowledgeable CPA or other qualified tax return preparer to discuss your particular situation.


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