Jack Matheny <rockydocks[at]yahoo.com> wrote:

- quote -

When you sell you will still have to recapture (add to gain)
the amount of depreciation allowed or allowable, so it is
foolish not to take it now.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

Some of the other pros on here may have more up-to-date
information than I do, but a couple of years ago at a tax
seminar I attended they stated that if a rental property (or
a business use property) were sold depreciation would be
recaptured even if depreciation were not actually taken.
Reasoning is that you were allowed to take it whether you
did or not, and recapture must be done.

Carol
My mind not only wanders, sometimes it leaves completely.

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Jack Matheny wrote:

- quote -

Well, you're not required to take it, no. But it won't do
you any good not to.

- quote -

When you sell your house you will be required to pay tax on
("recapture") depreciation that you took, or that you could
have taken.

Stu

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- quote -

The problem with that line of reasoning is that depreciation
is "allowed or allowable." that is, if you are allowed to
take depreciation for a qualifying home office, you need to
report the accumulated depreciation as a gain on the sale
whether or not you actually claimed it. So you might as well
get the tax benefit now.

And you only pay tax on the depreciation; the IRS decided
not to apportion the overall gain on sale of the house
between business and personal, which would have been a
killer tax with the kind of real estate appreciation in many
parts of the country.

Tom
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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If you qualify to take the home office deduction do you have
to deprectiate part of your house? Can you just take the
deductions for a percentage of utilities, percentage of
mortgage interest, ect without depreciating part of your
house? I would like to partake in some of the tax benefits
of a home office but I dont want to owe money when I sell
the house. Any help would be appreciated. Thanks

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