To clarify
Have you been claiming a Home Office Deduction previously?
If so, which method were you using "Regular Method" or the Simplified Method?
If not, do you know which method you will use going forward?
Regular method is based on the percentage of a house the office uses, and includes depreciation (which cannot be ignored or "not taken" by the taxpayer). You may be able to write off more with this method, but the biggest draw-back is that when you sell your home, you will need to "recapture depreciation".
This means you will probably need to claim the TOTAL amount of depreciation you took as taxable income when you sell your home. This is true even if you are eligible for the "home owner's exception to capital gains" and even if you didn't claim the depreciation over the years.
With the simplified method, you deduct a flat rate calculated by the square foot area of the office and there is no depreciation recapture.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
