Author Topic: Ending home office deduction  (Read 2305 times)

katsiki

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Ending home office deduction
« on: December 07, 2016, 07:04:28 PM »
My wife and I have done the home office deduction for several years while she worked from home.  She stopped working from home in July.  Instead of deducting part of the home office deduction, I am planning to not take the deduction this year.  Is there anything you would recommend I be aware of in stopping this deduction?

Thanks for any info!!

CareCPA

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Re: Ending home office deduction
« Reply #1 on: December 08, 2016, 09:31:34 AM »
Nope, nothing special to do.

Depending on your specific circumstances, you should actually be able to take a partial deduction for this year if you wanted to. If you are entitled to it, no reason not to take it - especially if you are claiming the simplified method since it greatly reduces your documentation.

SeattleCPA

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Re: Ending home office deduction
« Reply #2 on: December 08, 2016, 10:47:09 AM »
If you rent and so save both income taxes and self-employment taxes with the home office deduction, you may still want to take it...even if only for half a year.

If you own and so are mostly moving deductions from Schedule A to Schedules C and SE, it may not be worth it.

BTW, I don't think you have to worry about anything because you stop. (You will someday need to deal with the depreciation if you own your home office.... but that's easy enough to do.)

katsiki

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Re: Ending home office deduction
« Reply #3 on: December 08, 2016, 01:43:40 PM »
Thank you both!  I might do the half-year under the simplified method.  I was doing it the 'hard way' in years past.

Glad to hear that the future work when we sell our home is not a big deal.  I had been dreading that.  :)

caracarn

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Re: Ending home office deduction
« Reply #4 on: December 09, 2016, 09:09:20 AM »
Thank you both!  I might do the half-year under the simplified method.  I was doing it the 'hard way' in years past.

Glad to hear that the future work when we sell our home is not a big deal.  I had been dreading that.  :)

Working out the numbers that is why I've never actually used the home office deduction as you tend to negate it in total when you see the home and "give it back".  It just never made sense to me as it turned out nearly a wash and the increased hassle and tracking required for what amounts to 10% of your floor space and not having it used for anything else, etc. just never seemed worth it.

GoingConcern

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Re: Ending home office deduction
« Reply #5 on: December 09, 2016, 09:52:52 AM »
Well if you took depreciation on the office then you might have to recapture the depreciation.  But I believe the recapture is deferred until the sale of your home.

CareCPA

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Re: Ending home office deduction
« Reply #6 on: December 09, 2016, 11:17:14 AM »
Thank you both!  I might do the half-year under the simplified method.  I was doing it the 'hard way' in years past.

Glad to hear that the future work when we sell our home is not a big deal.  I had been dreading that.  :)

Working out the numbers that is why I've never actually used the home office deduction as you tend to negate it in total when you see the home and "give it back".  It just never made sense to me as it turned out nearly a wash and the increased hassle and tracking required for what amounts to 10% of your floor space and not having it used for anything else, etc. just never seemed worth it.
My understanding with the new simplified calculation is that there is no depreciation recapture when you sell.

 

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