Tax deductionsstrictly editorial
November 27, 2006
From: dcpubs@yahoogroups.com
I've been advised not to bother with home-office deductions because they're audit bait and (mostly) because depreciation is countered by tax consequences when the house is sold (having to pay cap gain taxes on profit above the *depreciated* value of the home office space..
To: dcpubs@yahoogroups.com
Interesting. I think I'm disagreeing in part — primarily because of the "audit bait" mention.
Context: I've been calculating home-office deductions for twelve years. The first six were in rented space, the last six not. I've undertaken only one repair that affected my office space. I'm about to undertake another. I've been audited once (after the repair) and gone to accountants for a review of my preparations twice. Each time I've been vetted, though the accountants have given suggestions for alternative approaches on certain details. Call me a control freak, but I prefer doing my own taxes and doing them manually. This said, I never depreciate if I can legally take a deduction off the top, which by and large I find I can.
FWIMBW.Now, of course, I get a friendly offlist response asking for more detail and this have to defend my disagreement with facts. Open mouth . . .