Tax Consequences for Home Business Office

Most people believe they will pay no taxes when selling their home as long as the gain falls below the maximum of $500,000 for a married couple and $250,000 for a single person, providing the owner has lived in the home two of the last five years. Well, here's a question that tax attorney Julian Block received:

Q. Within the next few years, I plan to sell my home. I use one of its rooms only as a home office for my business. I have been claiming office-at-home deductions for a proportional share of depreciation and other expenses associated with the room’s business use, just as I have been writing off all the equipment and furniture stuffed into the office. How do the tax rules work when I sell my home?

You might be amazed at the tax consequences you may face, especially when selling after maintaining a home office in your residence. Fortunately, remedies are available to you.

• Preparing Your House for Sale
  
• How to Market Your Home
  
• About Listing Agreements

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