Home Office Deduction

[statsman 5468]

My wife is a realtor (has been for anlmost 30 years) and has a home office. I do the taxes. We never claimed the office as a deduction, initially because doing so used to attract audits (I understand that’s not the case anymore). This year, I’m looking for every deduction I can. Couple of questions:

1. I understand that claiming depreciation from the home office can cause cause capital gain taxes when home is sold (otherwise, it would probably be our one time capital gains exemption). Can we deduct all expenses but skip deducting depreciation?

2. We remodeled about 65% of the house at an expense total of around $250,000. The home office was completely redone- floor, walls, trim, lights. Can we deduct that as part of our expense?

 Thanks for any help, or pointing I. The right direction for research 

[Gil Bang 25956]

your wife sounds like a do-nothing asshole

[Chewbacca 7777]

My wife is a realtor (has been for anlmost 30 years) and has a home office. I do the taxes. We never claimed the office as a deduction, initially because doing so used to attract audits (I understand that’s not the case anymore). This year, I’m looking for every deduction I can. Couple of questions:
1. I understand that claiming depreciation from the home office can cause cause capital gain taxes when home is sold (otherwise, it would probably be our one time capital gains exemption). Can we deduct all expenses but skip deducting depreciation?
2. We remodeled about 65% of the house at an expense total of around $250,000. The home office was completely redone- floor, walls, trim, lights. Can we deduct that as part of our expense?
 Thanks for any help, or pointing I. The right direction for research 

Talk to a CPA.

[Updawg 2266]

I need a just a normal tax guy in austin. Please pm Sick of TurboTax and other things.


Sorry to hi Jack

[Upgrayedd 5811]

Pics of wife?

[statsman 5468]

9 hours ago, Gil Bang said:

your wife sounds like a do-nothing asshole

I’m rubber, and you’re glue. Anything you say bounces off me and sticks to you. 

[Gil Bang 25956]

in this case, it does indeed stick.

[statsman 5468]

I did some research, and it does indeed appear that if I use this deduction, I do have to do the depreciation, which means (a small percent) of capital gains comes into play when the house is sold. Which most likely will be done by our heirs, either after we die or before we are put into assisted living. 
 
I’ll just start filling out the form and see how bad it is, and weigh the consequences. 

[Native Horn 3504]

OK great.  Good talk.

[NeverMarryAStripper 21907]

There’s a big difference in the treatment if your heirs sell it after you kick the Buc jet and if you sell it when they put you in an old folks home.

[Kennythetiger 9382]

Are you sure it’s capital gains tax and not ordinary income tax?