<icbmmark[at]aol.com> wrote:

- quote -

When you sell the home, there will be a tax to pay on the
home office depreciated part. It is not part of the
$250,000/$500,000 exemption.

State & local income taxes may also apply at the time of the
sale.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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Paul Thomas, CPA <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

When he eventually sells (say, in 3 years) is there any tax
treatment for the depreciation, or does it get forgotten?

Seth

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Thanks! I knew it didn't pass the common sense test, but
the tax software was giving me an error for not reporting
the home office on the 4797.

I've got a handle on the 179 depreciation.

I appreciate your assistance.

Mark

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<icbmmark[at]aol.com> wrote:

- quote -

Nope. There's no sale of the home, so no gain to report for
the home office.

I'd be concerned about your furniture, fixtures, computers,
etc where you took Section 179 expense over depreciation, as
a change in use (from 100% business to 0% business use)
would trigger a recapture of the excess Section 179 expense
over regular depreciation.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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I stopped using my home office for business on 3/06; I
depreciated the home office portion of my house for about
four years. I have not sold my home, but I am no longer
self employed, so it looks like I must report the total
depreciation of the home office space on Form 4797 as a
Section 1250 gain and pay capital gains for the total
depreciation (reported on Schedule D) for the 2006 tax year.

If this is correct, I assume I use the date I stopped using
the home office as the date sold (Form 4797 line 19) and I
can leave the gross sales price (line 20) and cost/other
basis/expenses of sale (line 21) both blank.

I certainly appreciate any assistance I can get...thanks. Mark

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