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#1
04-15-2005, 11:05 PM
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 Re: Home office Recapture Stuart A. Bronstein wrote: - quote - > jcoggshall[at]comcast.net wrote:
I'm not certain that means that he was out of luck.> > Help me understand something since I was unable to find any > > postings that answered this common situation.... > > > I am an employee who is currently required to work out of my > > home. Therefore I must depretiate that portion of the home's > > value in which I use it as an office. That depretiation > > works out to be $1,200 a year. However, the amount of my > > Misc deduction over 2% of my AGI is only $160 dollars. Now > > when I sell my house, I must still recapture the $1,200 from > > the depretiation, even though I was only actually able to > > realize a $160 deduction. Am I missing something? > As I recall, the code says you must recapture depreciation > "allowed or allowable." So my guess is that you're out of > luck. Remember that although it did contribute towards the total that eventually exceeded the 2% AGI floor, there is a distinct ordering (tiers) to the expenses under IRC 280A. Therefore one could argue that the depreciation (last tier) was not "allowed" due to being absorbed by the 2% floor. Is there a court case or TAM on this? - quote - > Maybe you should just sell your house when your taxable
That won't help him as post May-97 depreciation may be> equity reaches $250,000. Then you can get a new house and > start over from scratch. recognized regardless as ordinary income on the sale. (Or whatever form 4797 comes out to be). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-12-2005, 07:57 PM
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| Re: Home office Recapture jcoggshall[at]comcast.net wrote: - quote - > Help me understand something since I was unable to find any
As I recall, the code says you must recapture depreciation> postings that answered this common situation.... > I am an employee who is currently required to work out of my > home. Therefore I must depretiate that portion of the home's > value in which I use it as an office. That depretiation > works out to be $1,200 a year. However, the amount of my > Misc deduction over 2% of my AGI is only $160 dollars. Now > when I sell my house, I must still recapture the $1,200 from > the depretiation, even though I was only actually able to > realize a $160 deduction. Am I missing something? "allowed or allowable." So my guess is that you're out of luck. Maybe you should just sell your house when your taxable equity reaches $250,000. Then you can get a new house and start over from scratch. Stu << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-11-2005, 08:30 PM
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| Home office Recapture Help me understand something since I was unable to find any postings that answered this common situation.... I am an employee who is currently required to work out of my home. Therefore I must depretiate that portion of the home's value in which I use it as an office. That depretiation works out to be $1,200 a year. However, the amount of my Misc deduction over 2% of my AGI is only $160 dollars. Now when I sell my house, I must still recapture the $1,200 from the depretiation, even though I was only actually able to realize a $160 deduction. Am I missing something? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| home, office, recapture |
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