When I moved 5 years ago, I was worried about having to pay capital gains on the section I used for business. A CPA looked at my previous tax records and said that since I only claimed expenses (utilities, property tax, mortagage interest) on the business percentage and not depreciated that area, I need not pay capital gains. Saved me about 5K. So, I'm not depreciating real property now either. Now I import data from Quicken to TurboTax. What a breaze. I only have to make sure I have entries in Quicken earmarked for the proper tax form. Jon Page Harwich Port, Cape Cod, Mass. (jpage@capecod.net) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ At 12:41 AM 4/11/97 -0500, you wrote: >A ticking time-bomb with a lot of home office deductions explodes when >you sell your house. The portion that you have claimed as an office may >be treated as business property and therefore is not exempt from the >usual capital gain rollover when you buy a new house for more money or >the one-time capital gain exemption (for those over 55). There may be >other ramifications as well (depreciation recapture - you really don't >want to know). > >The lesson: what you deduct now may be added back later. Only you can >figure out if it's really worth it now. > >See IRS publication 587 and the instructions for Form 8829 before making >a decision. >And of course, consult your own tax advisor to deal with your individual >circumstances. (I have to say that) > >Don McCallion - don@ct2.nai.net >New Milford, CT >(admitted to bar, U.S. Tax Court) > >
This PTG archive page provided courtesy of Moy Piano Service, LLC