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IF you take the home office deduction what implications does that cause when I personally resell my home? Is it worth taking if I only made $5k last year in my business?

Forum|Forum|7 years ago
June 6, 2019
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TurboTax Self Employed Online

Best answer by JohnW15

As far as whether it's worth taking the home office deduction, that's a tax-advisory type of question that we're not allowed to answer.

That said, you should know that, if you include home depreciation as part of the home office deduction and eventually sell your home at a profit, you'll have to pay a capital gains tax on the total amount of depreciation deductions you took while you lived there, assuming you sold the home for a profit.

But please see the TurboTax Help article "Is the money I made from a home sale taxable?" for additional information on what might take place if and when you sell your home. This could influence your tax tactics.

{Edited 3|16|2020 9:39 am]

S

SweetieJean

Employee

You are required to claim all of your self-employment expenses.

J

JohnW15Answer

Employee

As far as whether it's worth taking the home office deduction, that's a tax-advisory type of question that we're not allowed to answer.

That said, you should know that, if you include home depreciation as part of the home office deduction and eventually sell your home at a profit, you'll have to pay a capital gains tax on the total amount of depreciation deductions you took while you lived there, assuming you sold the home for a profit.

But please see the TurboTax Help article "Is the money I made from a home sale taxable?" for additional information on what might take place if and when you sell your home. This could influence your tax tactics.

{Edited 3|16|2020 9:39 am]