I bought a building with a storefront and apartment above. I live in the apartment and use the storefront as a great room and office from my self employed business. I use the address as my business address but all my business is conducted off site (I'm a photographer). Basically it is a live work space for my wife and me. We bought in 1995 and the building is paid off.
The capital gain would be under $500k. How is this treated for taxes? Can I use personal use exemption for cap gain and not pay any taxes? It is zoned mixed use commercial/residential. What about depreciation recapture? I plan on retiring and have some flexibility on when to sell if that makes a difference. If I end the business and sell later for example.
Thanks for any input!
